Ordinary Meeting of Council Attachments Wednesday 16 ......NEWROC Executive Meeting 24 September...

Ordinary Meeting of Council

Attachments

Wednesday 16 October 2019

4.30pm

Executive Meeting

24 September 2019

Shire of Wyalkatchem Council Chambers

MINUTES

9am Integrated Planning Workshop (Stephen Grimmer) 1.00pm NEWROC Meeting

NEWROC Vision Statement NEWROC is a strong, cohesive regional leadership group that fosters economic prosperity of

member Councils.

www.newroc.com.au

http://www.newroc.com.au/

ANNUAL CALENDAR OF ACTIVITIES

MONTH ACTIVITY MEETING January Executive

February Council refreshes itself on NEWROC Vision, Mission, Values (review Vision and Mission every other year)

Council reviews NEWROC project priorities

Council

March WDC attendance to respond to NEWROC project priorities

Submit priority projects to WDC, Regional Development and WA Planning

Discussion regarding portfolios vs projects, current governance structure

Executive

April NEWROC Budget Preparation

Review NEWTRAVEL Tourism Officer Contract - expires June 2017

Council

May NEWROC Draft Budget Presented

NEWROC Executive Officer Contract/Hourly Rate Review (current contract expires June 2019)

Local Government Week agenda to be discussed at Executive meeting to determine if EA should attend

Executive

June NEWROC Budget Adopted Council

July Executive

August Information for Councillors pre-election Council

September Executive

October NEWROC CEO and President Handover Council

November NEWROC Induction of new Council representatives (every other year)

Review NEWROC MoU (every other year)

Executive

December NEWROC Drinks Council

ONGOING ACTIVITIES

Compliance

Media Releases

NEWROC Rotation

Shire of Mt Marshall

Shire of Nungarin

Shire of Wyalkatchem (November 2017 – November 2019)

Shire of Koorda

Shire of Mukinbudin

Shire of Trayning

NEWROC Executive Meeting 24 September 2019 - MINUTES

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TABLE OF CONTENTS

1. OPENING AND ANNOUNCEMENTS ............................................................................... 4

2. RECORD OF ATTENDANCE AND APOLOGIES ............................................................ 4

2.1. ATTENDANCE 4 2.2. APOLOGIES 4 2.3. GUESTS 4 2.4. LEAVE OF ABSENCE APPROVALS / APPROVED 4

3. DECLARATIONS OF INTEREST AND DELEGATIONS REGISTER ............................... 4

3.1. DELEGATION REGISTER 4

4. PRESENTATIONS ........................................................................................................... 4

5. MINUTES OF MEETINGS ................................................................................................ 5

5.1. BUSINESS ARISING 5

6. FINANCIAL MATTERS .................................................................................................... 6

6.1. INCOME, EXPENDITURE AND PROFIT AND LOSS 6

7. MATTERS FOR CONSIDERATION ................................................................................. 8

7.1. NEWROC STRATEGIC PLANNING – PROJECT UPDATES 8 7.2. TELECOMMUNICATIONS PROJECT 11 7.3. NEWTRAVEL 12 7.4. NEWROC HEALTH FORUM 13

8. EMERGING NEWROC ISSUES AS NOTIFIED, INTRODUCED BY DECISION OF THE MEETING ............................................................................................................................. 14

8.1. VAC SWIM 14

9. OTHER BUSINESS – TO BE NOTED AND RECEIVED ................................................ 14

10. 2019 MEETING SCHEDULE ........................................................................................ 14

11. CLOSURE .................................................................................................................... 14


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NORTH EASTERN WHEATBELT REGIONAL ORGANISATION OF COUNCILS

Minutes for the Executive Meeting held at the Shire of Wyalkatchem Council Chambers on Tuesday 24 September 2019 commencing at 1.00pm.

MINUTES

1. OPENING AND ANNOUNCEMENTS

NEWROC CEO, Taryn Dayman welcomed everyone and opened the meeting at 1pm

2. RECORD OF ATTENDANCE AND APOLOGIES

2.1. Attendance

Taryn Dayman NEWROC CEO, Shire of Wyalkatchem Darren Simmons CEO, Shire of Koorda John Nuttall CEO, Shire of Mt Marshall Adam Majid CEO, Shire of Nungarin Ed Nind Finance Manager, Shire of Mukinbudin

NEWROC Officer

Caroline Robinson Executive Officer, NEWROC

2.2. Apologies

Brian Jones CEO, Shire of Trayning Dirk Sellenger CEO, Shire of Mukinbudin

2.3. Guests

2.4. Leave of Absence Approvals / Approved

Nil

3. Declarations of Interest and Delegations Register

Nil

3.1. Delegation Register

Please find below a delegations register as per the new policy adopted in March 2017:

Description of Delegations Delegatee Delegated to Approval

Records Management CEO NEWROC EO Council

NEWROC Financial Management CEO NEWROC EO Council Dec 2017

Bendigo Bank Signatory (NEWROC)

CEO NEWROC EO Council Dec 2017

Bendigo Bank Signatory (Shire of Wyalkatchem)

Council CEO Council Dec 2017

NEWROC Website CEO NEWROC EO Council June 2017

4. Presentations

Nil


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5. MINUTES OF MEETINGS

Minutes of the Executive Meeting held 23 July 2019 have previously been circulated.

RESOLUTION That the Minutes of the Executive Meeting held on 23 July 2019 be received as a true and correct record of proceedings. Moved D Simmons Seconded J Nuttall CARRIED 4/0

5.1. Business Arising


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6. FINANCIAL MATTERS

6.1. Income, Expenditure and Profit and Loss

FILE REFERENCE: 42-2 Finance Audit and Compliance REPORTING OFFICER: Caroline Robinson DISCLOSURE OF INTEREST: Nil DATE: 17 September 2019 ATTACHMENT NUMBER: #1P and L CONSULTATION: Taryn Dayman – CEO, Shire of Wyalkatchem STATUTORY ENVIRONMENT: Nil VOTING REQUIREMENT: Simple Majority

COMMENTS

Account Transactions

North Eastern Wheatbelt Regional Organisation of Councils

For the period 1 August 2019 to 31 August 2019

Date Description Reference Credit Debit Running Balance

BB NEWROC Funds-5557 Opening Balance 179,137.38 0.00 179,137.38

01 Aug 2019 Bendigo Bank Interest Received 15.23 0.00 179,152.61

01 Aug 2019 Payment: Monitor Bookkeeping Services

XERO Subscription 0.00 50.00 179,102.61

02 Aug 2019 Payment: ATO ATO-BAS Apr-June 0.00 15,731.00 163,371.61

06 Aug 2019 Payment: Solum Solum- EO Services July 0.00 3,520.00 159,851.61

14 Aug 2019 Payment: Shire of Koorda Shire of Koorda 2019/20 Subs

14,300.00 0.00 174,151.61

23 Aug 2019 Payment: Shire of Mt Marshall INV-0056 14,300.00 0.00 188,451.61

23 Aug 2019 Payment: Shire of Wyalkatchem INV-0060 14,300.00 0.00 202,751.61

Total BB NEWROC Funds-5557

42,915.23 19,301.00 202,751.61

Closing Balance 202,751.61 0.00 202,751.61

BB Term Deposit Account-1388 Opening Balance 150,000.00 0.00 150,000.00

26 Aug 2019 Bendigo Bank Interest Received - Term Deposit

1,603.36 0.00 151,603.36

Total BB Term Deposit Account-1388

1,603.36 0.00 151,603.36

Closing Balance 151,603.36 0.00 151,603.36

Total 44,518.59 19,301.00 25,217.59


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RESOLUTION That the income and expenditure from 1 August 2019 to 31 August 2019 and the P and L and balance sheet as at 31 August 2019 be received. Moved A Majid Seconded D Simmons CARRIED 4/0


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7. MATTERS FOR CONSIDERATION

7.1. NEWROC Strategic Planning – Project Updates

FILE REFERENCE: 041-5 Strategic and Future Planning REPORTING OFFICER: Caroline Robinson, Executive Officer DISCLOSURE OF INTEREST: Nil DATE: 17 September 2019 ATTACHMENT NUMBER: #2 Project Methodology - Waste CONSULTATION: Western Power

Innovation Central Midlands Taryn Dayman Darren Simmons Giles Perryman

STATUTORY ENVIRONMENT: Nil VOTING REQUIREMENT: Simple Majority

COMMENT

Below is an updated status report for the NEWROC Strategic Projects:

NEWROC STRATEGIC PROJECTS – Status Report

Pro

jec

ts 2

01

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NEWROC PRIORITY PROJECT as

developed at February 2018 Strategy Day

PROGRESS NEWROC EO NEXT STEP

CEO SUPPORT

FUTURE FUNDING

1. Renewable Energy Investigation Business Case

Discussion with Power Ledger following their presentation to Innovation Central Midlands

MicroGrid Report released

Renewable Energy Project Plan developed

Stage 2 Report Completed (included DPIRD and Western Power meetings)

NEWROC EO met with Western Power Design Energy Team

NEWROC EO met with Steve Mason ICM regarding their energy project

BBRF - $20,000 under Business Case (Announced Sept 2018) Purpose – options analysis

2. IT Services Investigation into IT support for members as well as businesses in the district

Presentation to Executive at May Executive meeting by IWS Corporate

Three members progressing with IT Vision

Formation of a IT steering group (C Robinson, A Majid)

3. Regional Subsidiary Investigation and preparation

Executive working on charter and business plan (DRAFT)

Meeting held with the Minister for Local Government February 2019

NEWROC Letter of thanks to the Minister for the meeting

NEWROC CEO and NEWROC EO met with DLG and discussed the regional subsidiary regulations (16/4/19)

ACTION – NEWROC to provide feedback on financial compliance and suggested amendments as well as projects we would use within a regional subsidiary structure


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Following a project steering group teleconference with Giles Perryman of ASK Waste Management a revised methodology has been developed. The key changes are:

A desktop assessment of the existing landfills and their suitability as a regional facility. The addition of option 4. Establishing a single regional landfill, that would be supported

by satellite transfer stations Providing information about the financial difference between remote CCTV / swipe card

access compared to staffing the facilities. In order to include these additional tasks within the original budget, the scope now excludes:

The implementation plan and strategic actions to align with the selected option (1 – 4) The end of project presentation via telecom.

Members are asked to review the scope of works and provide comment.

Note the information sent from Tony Brown regarding regional collaboration

4. Telecommunications – contemporary and future focused

Advocacy

Crisp Wireless has developed a strategic infrastructure investment list

NEWROC has commissioned a tower in the Shire of Mukinbudin

In principle support for a tower in Yorkrakine

Mukinbudin tower in progress

Continue to promote CW for sign ups

John Nuttall

2019

5. Roads Contracting to MRWA

Investigation

NEWROC EO spoke with Shire of Chapman Valley CEO to discuss their roads contracting service under the regional council

March Executive meeting, members brought Amount (dollars) of road works that was outsourced last financial year and any previous years and the amount (dollars) of engineering that was outsourced last financial year and any previous years

Project plan and sample job description developed for an engineer across the NEWROC

Contact made with WDC regarding this position as a cash or in kind contribution to the Wheatbelt Secondary Freight Network – would only be considered in kind

6. Waste Investigation

Improving local waste sites

Giles Perryman from ASK Waste Management presented at June Council meeting

NEWROC EO met with RDA Wheatbelt EO to discuss NEWROC strategic projects and waste was raised – current Board member of RDA Wheatbelt is interested in waste and our interest will be raised with the Board

ASK Waste Mgt awarded work for the business case.

Waste steering group formed to guide ASK Waste Mgt (Taryn, Darren and Caroline). Meeting held over the phone on Tues 11 Sept

See attached new scope for ASK Waste Mgt following project steering group meeting


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RESOLUTION Information is received

Moved J Nuttall Seconded A Majid CARRIED 4/0

Discussion:

Members discussed the updated methodology from ASK Waste Management following

a teleconference with Taryn Dayman, Darren Simmons and the NEWROC EO Members agreed that the work needed to address different options with a detailed

analysis (cost analysis, logistics, capital requirements, funding options, risks etc) so that NEWROC members could make an informed decision regarding waste going forward and how to implement it

Strategic option number 4 was included for future consideration, to also help inform Waste Strategy WA response

The Shire of Koorda is considering engaging ASK Waste Management to do some localised work as well

Preferred timeline is to see the work completed by the November Council meeting NEWROC EO provided an update on the childcare project and REED’s agreement to

proceed further with the provision of a mobile childcare service. NEWROC EO to meet with REED CEO to determine next steps

NEWROC EO has met with the Western Power Design team Members discussed the integrated planning workshop with Stephen Grimmer and

agreed to add it to the list of strategic projects. The general understanding was that the members would consider a joint review in early 2020, a NEWROC Strategic Plan and individualised plans linking to it

ACTION

NEWROC EO to clarify methodology with ASK Waste Management


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7.2. Telecommunications Project

FILE REFERENCE: 035-1 Grants General REPORTING OFFICER: Caroline Robinson DISCLOSURE OF INTEREST: Nil DATE: 17 September 2019 ATTACHMENT NUMBER: CONSULTATION: Maree Gooch, Crisp Wireless STATUTORY ENVIRONMENT: Nil VOTING REQUIREMENT: Simple Majority

COMMENT Tower in the Shire of Mukinbudin has progressed and an invoice has been received from Crisp Wireless.

Actions by the NEWROC EO:

Survey sent to residents in Yorkrakine

Updated Social Media flyers to promote free signup campaign sent to all CEO’s

Maildrop completed in Bencubbin, spoke to Maree to coordinate this in other towns, this is to be confirmed unfortunately too late for current promotion but could be considered for future promotions. Dependent on success of Bencubbin maildrop – this was arranged a few months back

RESOLUTION That the information be received Moved J Nuttall Seconded D Simmons CARRIED 4/0

Discussion:

John Nuttall suggested Crisp Wireless to speak with Silver Chain regarding their take up on the internet service. NEWROC EO to speak to Crisp Wireless

Invoice for the Mukinbudin tower has been received and will be paid NEWROC EO to remind Crisp Wireless to speak to the Education Department


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7.3. NEWTRAVEL

FILE REFERENCE: 132 – 1 NEWTravel REPORTING OFFICER: Caroline Robinson DISCLOSURE OF INTEREST: Nil DATE: 17 September 2019 ATTACHMENT NUMBER: Nil CONSULTATION: Linda Vernon, Tourism Officer NEWTRAVEL STATUTORY ENVIRONMENT: Nil VOTING REQUIREMENT: Simple Majority

COMMENT As per identified strategies in the NEWTravel Forward Directions Plan, NEWTravel has applied for a QANTAS grant and also a REDS grant for its proposed marketing panel. No additional financial contributions were required from members. Linda Vernon, NEWTravel EO wrote both applications for the groups and was supported by the Central Wheatbelt Visitor Centre, WEROC and Roe Tourism.

RESOLUTION Information is received. Moved A Majid Seconded D Simmons CARRIED 4/0

Discussion:

Members discussed the representation at NEWTravel meetings so to the updated constitution and forward projects such as the marketing expertise


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7.4. NEWROC HEALTH FORUM

FILE REFERENCE: 071-1 Health General REPORTING OFFICER: Caroline Robinson DISCLOSURE OF INTEREST: Nil DATE: 17 September 2019 ATTACHMENT NUMBER: #3 Health Forum Program CONSULTATION: Marissa MacDonald, WALGA STATUTORY ENVIRONMENT: Nil VOTING REQUIREMENT: Simple Majority

COMMENT

The NEWROC Health Forum will be held on Friday 20 September 2019 in Trayning. An updated program is attached. Unfortunately Dr Walker could no longer present due to a clinical appointment and Peter Geraghty and Matthew Guile collaborated on the St John’s Ambulance presentation. As at Tuesday 17 September, there was 43 in attendance including speakers. Thank you to WALGA for their assistance in organizing the event. A review of the event will take place at the Executive meeting.

RESOLUTION Information is received Moved J Nuttall Seconded A Majid CARRIED 4/0

Discussion:

Members discussed the presentations at the NEWROC Health Forum NEWROC EO tried to contact the ABC Radio however no luck, Taryn Dayman may

have a contact NEWROC EO is collecting the presentations from presenters to send out to attendees NEWROC EO will follow up with WALGA regarding the outcomes of the day NEWROC EO to email out media release


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8. EMERGING NEWROC ISSUES as notified, introduced by decision of the Meeting

8.1. VAC SWIM

Number of rural towns who will not have VACSWIM in Dec 2019 / Jan 2020 school

holidays eg. Koorda, Wyalkatchem Mia Davies has sent an email to Councils requesting input on the decision to not offer

VACSWIM

ACTION: NEWROC to write a letter to Mia Davies regarding the VACSWIM program

9. Other Business – To Be Noted and Received

Darren Simmons gave a brief update on the Wheatbelt Secondary Freight project

10. 2019 MEETING SCHEDULE

29 October Council Trayning

26 November Executive TRAYNING

10 December Council Wyalkatchem

11. CLOSURE

NEWROC CEO Taryn Dayman thanked everyone for their attendance and closed the meeting at 2.06pm.

Final Report State Council and Zone Structure and Process

Working Group

August 2019

www.walga.asn.au 2

Contents

Background ....................................................................................................................... 4

Working Group ................................................................................................................ 4

Working Group Membership ........................................................................................ 5

Method and Timeline ................................................................................................... 6

Working Group Review ..................................................................................................... 8

Previous Reviews ............................................................................................................ 8

2018 Constitutional Amendments ................................................................................ 8

2015 Review of Key Governance Documents .............................................................. 9

2011 Review of Structure & Effectiveness of State Council & Zones .......................... 10

Arrangements in Other States and New Zealand ........................................................... 11

Local Government Association Governance Structures Table .................................... 12

Local Government New South Wales ......................................................................... 13

Municipal Association of Victoria ................................................................................ 13

Local Government Association of Tasmania .............................................................. 13

Local Government Association of South Australia ...................................................... 14

Local Government Association of Queensland ........................................................... 15

Local Government Association of the Northern Territory ............................................ 15

Local Government New Zealand ................................................................................ 16

Working Group Deliberations ........................................................................................ 17

Strengths of the Current Model ...................................................................................... 17

Weaknesses of the Current Model ................................................................................. 19

Options for Consideration .............................................................................................. 20

State Councillor Profile and Role ............................................................................... 20

Two Tier Structure ..................................................................................................... 21

Zones ......................................................................................................................... 21

Regional Capitals Alliance Submission ...................................................................... 21

Other Issues .............................................................................................................. 23

Recommendations .......................................................................................................... 24

State Council Composition ............................................................................................ 24

Deputy State Councillors ............................................................................................ 24

Term Limits for State Councillors ............................................................................... 25

Role of State Councillor ................................................................................................. 25

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Elected Member Prospectus .......................................................................................... 26

Committee Structure ...................................................................................................... 27

Committee Membership ............................................................................................. 27

Finance and Services Committee .............................................................................. 28

Policy Teams ............................................................................................................. 29

Committee Assignment Process ................................................................................ 29

Role of State Council ................................................................................................. 30

Process for Preparation and Consideration of Submissions .......................................... 30

Zone Support and Guidance .......................................................................................... 32

State Council Agenda .................................................................................................... 33

Consultation and Implementation .................................................................................. 35

Schedule of Recommendations ..................................................................................... 36

Appendix 1 – Sample State Council Agenda Item ........................................................ 38

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Background

State Council, at its 27 March 2019 meeting, endorsed a recommendation of the Executive

Committee to establish a working group to develop options to revise State Council’s

structure. At the State Council Blue Sky workshop held in June 2018 there was discussion

relating to WALGA’s structure and it was suggested that a preferred model should be

developed for sector consultation.

Reviews of State Council’s structure and processes were undertaken in 2011 and 2015.

These reviews endorsed the current structure of State Council, but led to some modifications

relating to process.

Specifically, there were two key outcomes from the 2015 review:

1. Formation of the Executive Committee – expanded the remit of the previous Finance

and Services Committee to include enhanced responsibility for policy matters

including interim submissions, as well as explicit responsibility for undertaking the

Chief Executive Officer performance review.

2. Emerging Issues – Streamlining of emerging issues process, which has led to 15

emerging issues being considered at the last 12 State Council meetings since

December 2016.

To facilitate the review, State Council formed a working group with well-defined terms of

reference.

Working Group

The Working Group has been convened to develop an alternative model to the existing State

Council structure for State Council consideration and then, if endorsed by State Council as

worthy of further consideration, consultation with WALGA’s members.

In particular, the working group could consider the:

Composition of State Council as a representative board;

Underpinning principle that metropolitan and country Local Governments should be

equally represented on State Council;

Role of Zones;

Method of election of State Councillors;

Relationship between State Council and Zones;

Existing Zone structures and the basis for the membership of Zones;

Method of election of the President;

Role of the Deputy President;

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Role and membership of the Executive Committee;

Continuing effectiveness of State Council committees such as the Selection

Committee, and Honours Panel;

Membership and efficacy of State Council Policy Teams, and Policy Forums;

Ability of Zones to shape State Council decision-making through emerging issues;

Interim submission process to meet Government deadlines;

Format of State Council meetings and agendas;

Continuing need to print and distribute hard-copy State Council agendas;

Protocols for Zone delegates and Local Governments putting forward Zone agenda

items;

Any other matters relating to the existing structure or process of State Council,

committees of State Council and Zones.

The working group has been charged by State Council with making recommendations to

State Council for an alternative structural governance model for WALGA. In addition, the

working group may consider making recommendations that would enhance the effectiveness

of WALGA’s governance processes for the benefit of members and the organisation.

Working Group Membership

The Working Group comprised of the following members:

WALGA President President Cr Lynne Craigie OAM (Chair)

WALGA Deputy President Mayor Tracey Roberts

State Councillor President Cr Phil Blight

State Councillor President Cr Karen Chappel JP

State Councillor Cr Jan Court JP

State Councillor President Cr Tony Dean

State Councillor Cr Russ Fishwick JP

State Councillor Mayor Logan Howlett JP

State Councillor Cr Paul Kelly

State Councillor President Cr Stephen Strange

WA Regional Cities Alliance President Cr Harold Tracey, Shire of Broome (Meetings one and two)

Mayor Dennis Wellington, City of Albany (Meeting three)

Country Local Government Chief Executive Officer

Annie Riordan, Shire of Harvey

Metropolitan Local Government Chief Executive Officer

Michael Parker, City of Rockingham

WALGA Chief Executive Officer Nick Sloan

WALGA Executive Manager Governance and Organisational Services

Tony Brown

WALGA Manager Strategy and Association Governance

Tim Lane

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Method and Timeline

In broad terms the Working Group adopted the following process:

1. Provision of a range of background material including the WALGA Constitution,

Corporate Governance Charter, and outcomes and discussion papers from the 2015

and 2011 reviews;

2. Consideration of strengths and weaknesses of the current model;

3. Development of an alternative model or models, and additional recommendations for

presentation to State Council.

The following timeline was adopted for the Working Group’s process:

Stage 1 – Working Group Review

May 2019 – Working Group formed

President to appoint State Council and member Chief Executive Officer

representatives

June 2019 – Working Group Meeting One

Confirmation of Working Group Terms of Reference and Purpose

Consideration of Previous Review processes and outcomes

Consideration of Governance Structures of other State Associations and Local

Government New Zealand

Discussion relating to current arrangements including strengths and weaknesses of

the current model and processes

Initial development of ideas and opportunities for change

July 2019 – Working Group Meeting Two

Refinement of initial ideas and opportunities for change

Development of further ideas and opportunities for change

Development of draft recommendations

August 2019 – Working Group Meeting Three

Confirmation of a preferred model

Agreement regarding presentation of recommendations to State Council

Stage 2 – Consideration of Working Group Recommendations

September 2019 – State Council Consideration of Working Group Recommendations

Endorsement of internal recommendations relating to process or procedure (if

appropriate)

Endorsement of consultation process relating to external and structural

recommendations

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Implementation of internal recommendations once endorsed by State Council

October 2019-December 2019 – Sector Consultation (if required)

Consultation on external and structural recommendations with Local Governments

and Zones

March 2020 – State Council endorsement of external and structural recommendations

State Council endorsement of external and structural recommendations

Drafting of Constitutional Amendments (if required)

Drafting of amendments to Corporate Governance Charter (if required)

Implementation of endorsed recommendations

August 2020 – Constitutional Amendments (if required)

Consideration of Constitutional Amendments at 2020 Annual General Meeting

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Working Group Review

The working group first considered previous reviews undertaken by WALGA, and also

investigated governance arrangements of Local Government Associations in other states of

Australia and New Zealand.

Previous Reviews

Significant reviews have been undertaken in 2011 and 2015. In addition, a number of

amendments to WALGA’s constitution in were endorsed in 2018.

To varying degrees, these previous reviews have considered:

The structure of State Council, including the equal representation of metropolitan and

non-metropolitan members;

The number of State Councillors and the representational nature of State Council;

The role, number and structure of Zones;

Changes to Committees of State Council including their role, function, membership,

and delegated decision-making authority;

Codification of existing conventions;

Changes to the Constitution and Corporate Governance Charter to respond to

changes in circumstances and legislation.

2018 Constitutional Amendments

WALGA’s Constitution was amended in 2018. The amendments to the Constitution followed

discussion at State Council Strategic Forums regarding:

1. Rotation of the office of the President between the metropolitan and country

constituencies of State Council; and relatedly,

2. The convention that the Deputy President will be from the alternate constituency to

the President.

Historically, the two issues above had been managed by ‘convention’, but State Council

requested the secretariat to investigate codifying the above in the WALGA Constitution.

This also enabled other amendments and clarifications to be made in response to changed

legislation and to reflect established practice.

Specifically, WALGA’s Constitution was amended in 2018 to:

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1. Codify an existing convention that the President and Deputy President of WALGA

would be drawn from opposite constituencies. That is, when the President is from the

metropolitan constituency, the Deputy President would be from the country

constituency and when the President is from the country constituency, the Deputy

President would be from the metropolitan constituency;

2. Codify an existing convention that the office of Presidency will be rotated between the

metropolitan and country constituencies. That is, when a President leaves office, only

State Councillors from the alternate constituency will be eligible to nominate for the

office of President;

3. Clarify that eligibility criteria relating to the disqualification of State Councillors also

apply to ex-officio members of State Council;

4. Ensure that members of State Council and/or Zone delegates suspended by the

Minister for Local Government under Part 8 of the Local Government Act 1995 are

disqualified from State Council and/or from the Zone as appropriate. Previously, this

provision referred to only one method of suspension by the Minister for Local

Government; and,

5. Clarify that the President has a deliberative vote, and not a casting vote, in elections

for President and Deputy President.

2015 Review of Key Governance Documents

A review of the following key governance documents was undertaken in 2015:

Constitution

Corporate Governance Charter

Standing Orders

A discussion paper was produced for the 2015 Review which was structured around the

following three themes:

1. Review of documentation – a review of identified issues in the three documents listed

above;

2. Technical drafting – correction of technical wording and alignment across the three

documents listed above; and,

3. Review of State Council and Zone processes and effectiveness.

The outcomes of this review are summarised below, with full details of review outcomes

contained in the March 2016 State Council Minutes.

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The Constitution was amended to:

Add a clause requiring State Council to adopt standing orders that will apply to

meetings of State Council;

Add a clause specifying that a State Councillor would be disqualified from serving on

State Council if they were suspended by the Minister for Local Government;

Enforce a term limit on the President of two consecutive two-year terms, which

existed at the time for the Deputy President; and,

Explicitly state that the President does not have a casting vote if there is a tied vote

in an office bearer election.

The Corporate Governance Charter was amended to:

Express the role of the Deputy President;

Clarify that the President of Local Government Professionals will have the opportunity

to present a report at State Council meetings;

Insert a provision stating that State Council must resolve to consider an ‘emerging

issue’ prior to it being considered;

Insert further information regarding the formation and operation of the Local

Government House Trust;

Add procedures for the management of committees with delegated powers including

requirements for:

o Terms of reference;

o Membership and fixed two year terms;

o Appointment process, which specifies that State Council will determine

appointments of State Councillors and external representatives, and that

State Council may use the Selection Committee for this purpose.

In addition, amendments were made to the Standing Orders, and a complaints handling

procedure was added to the Code of Conduct.

2011 Review of Structure & Effectiveness of State Council & Zones

A Working Group was formed in late 2010 to undertake a review of the structure and

effectiveness of WALGA’s governance structures.

To guide the review, a discussion paper was prepared and distributed to the sector with

submissions sought on the paper, as well as any other relevant matters.

The paper was structured around the following key subjects:

Current Arrangements;

Strengths of Current Arrangements;

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Weaknesses of Current Arrangements;

Options for Change – Structure; and,

Options for Change – Effectiveness.

Following feedback from the sector, and consideration by the Working Group of the sector’s

feedback, an item was presented to State Council that resulted in the following outcomes:

Endorsement of current arrangements with a set of responsibilities for the Forum of

Co-Chairs to be developed (note the Forum of Co-Chairs no longer exists);

WALGA to provide additional support to Zones to enhance their advocacy role,

including:

o Provide suggestions for guest speakers and topics for consideration by

Zones;

o Provide a consistent liaison officer when requested by Zones;

o All Zones be offered a presentation providing an overview of WALGA and its

advocacy and service functions following the election of Zone delegates every

two years;

o Zone Chairs to receive an induction on the role of the Zone Chair;

o An item to be presented to all relevant Zones seeking endorsement for their

Executive Officer to attend the bi-annual WALGA Zone Executive Officer

meetings.

Development of a strategy to establish meetings between State Councillors and

Members of Parliament;

A change in State Council’s calendar to move from six meetings per year to five; and,

A review of State Council sitting fees.

Arrangements in Other States and New Zealand

The Working Group considered governance arrangements of Associations from other States

of Australia as well as New Zealand.

It can be seen that State Associations of Local Government typically elect a board similar to

WALGA’s State Council. Some State Associations elect board members directly from the

membership although most use regions or zones to elect board members to represent

particular regions. In all other states, the President is elected by the membership.

A summary table below outlines the number of board members and their method of election.

Note that Queensland operates with a dual structure comprising of a board and a policy

executive.

www.walga.asn.au 12

Local Government Association Governance Structures Table

WALGA

LGNSW

MAV (Victoria)

LGAT (Tas)

LGASA

LGAQ (QLD)

LGANT

LGNZ

Board Policy

Executive

Number of Board Members

25 19 13 8 18 4 16 9 15

President Elected by:

Board Members (AGM)

Members (AGM)

Members (Postal vote)

Members (Postal vote)

Members (AGM) Members (AGM)

Members (AGM)

Board Members elected by:

Zones

Members at

AGM: Metro

members elect metro reps / Rural

members elect rural reps

Zone equivalen

t (12 regions)

Zone equivalent

(3 regions) – one rep above

population

threshold, one below from each

region

Zone equivalent (one metro region, six

country regions, plus unincorporate

d areas)

Board members elected by and from

policy executiv

e

Zone equivalen

t (12 regions)

Members at

AGM

Zones and

Sector Groups

Comment on Summary Table

Size of Board – while WALGA’s board contains the largest number of

representatives, it can be seen that boards of local government associations tend to

be relatively large. The average board size (using Queensland’s policy executive, not

board) is 15.4.

Method of Election of President – WALGA is an outlier: all other Presidents are

elected directly by the membership. Perhaps this is a reflection of the prevalence of

Council elected Mayors and Presidents in WA.

Method of Election of Board Members – The majority of associations use regional

groupings (equivalent to our Zones) to elect board members. The New Zealand hybrid

model of electing representatives from geographic zones and sector groups (metro,

provincial, rural, regional) is of interest.

www.walga.asn.au 13

Local Government New South Wales

The Board of Local Government New South Wales consists of:

The President (which rotates between metropolitan / urban and regional / rural)

elected by delegates at an annual meeting;

The Immediate Past President (where applicable);

Two Vice-Presidents (one from a Metropolitan/Urban council and the other from a

Regional/Rural council) elected by delegates from the respective groupings at the

annual general meeting;

A Treasurer elected by delegates at the annual general meeting; and,

14 Committee members (7 from metropolitan / urban councils and 7 from regional /

rural councils) elected by delegates at the annual general meeting. Metropolitan /

urban delegates elect metropolitan / urban representatives and regional / rural

delegates elect regional / rural representatives.

Municipal Association of Victoria

The Municipal Association of Victoria (MAV) is governed by a 13 member board.

The 12 members of the board (excluding the President) are elected by 12 regional groupings

of Local Governments. There are six metropolitan regions and six non-metropolitan regions

that each elect one board member.

The members of MAV directly elect the President at a meeting of State Council. Each

member has one representative on State Council, which meets twice per year.

For clarity, MAV’s State Council in this context is most similar to WALGA’s Annual General

Meeting and MAV’s Board is similar to WALGA’s State Council.

The Board elects two Deputy Presidents: one from the metropolitan regions and one from

the non-metropolitan regions.

Local Government Association of Tasmania

The Local Government Association of Tasmania (LGAT) is governed by a General

Management Committee of eight members.

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The General Management Committee comprises:

The President, elected by the members by postal ballot;

The Lord Mayor of the City of Hobart, or his or her proxy;

Six members elected from three electoral districts (North West and North Coast,

Northern, and Southern) conducted via postal vote. Each electoral district is to elect

one representative from Councils with a population of 20,000 or more, and one

representative from a Council with a population of less than 20,000.

The General Management Committee elects a Vice President from its members.

Local Government Association of South Australia

The Local Government Association of South Australia is governed by an 18 member board

consisting of the following representatives:

The President, elected by postal vote by ordinary members (by Council resolution),

noting that the President must have served at least one year on the board to be

eligible to nominate for the office of President. Note the Presidency is rotated between

metropolitan and non-metropolitan regions;

The Immediate Past President, if willing and able to serve, and must still be a member

of a Council of an ordinary member. The Immediate Past President undertakes the

role of a board member as well as assisting the President to the extent requested by

the President;

Eight board members (and four deputy members) from the metropolitan region

elected by postal vote by ordinary members from the metropolitan region;

Representatives from the following Regions elected by the Regions:

o Two board members (and one deputy) from Central Region;

o Two board members (and one deputy) from River Murray Region;

o One board member (and one deputy) from Eyre Peninsula Region;

o One board member (and one deputy) from South East Region;

o One board member (and one deputy) from Southern and Hills Region;

o One board member (and one deputy) from Spencer Gulf Cities Region; and,

One board member appointed by the board to represent unincorporated areas.

In addition, there are four Vice Presidents elected from amongst the board members: two

metropolitan and two from non-metropolitan regions.

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An Executive Committee is also formed comprising of the following members:

President;

Immediate Past President;

The Four Vice Presidents.

The Executive Committee undertakes functions delegated by the board as well as the CEO’s

performance review and setting of the CEO’s KPIs.

Local Government Association of Queensland

The Local Government Association of Queensland (LGAQ) employs a dual structure that

comprises a Policy Executive and a Board.

The Board comprises the LGAQ President elected by the member councils at the Annual

General Meeting plus three directors who are elected from and by the Policy Executive. The

Board is responsible for the operation of the business of the company.

The Policy Executive is responsible for the determination of the Association's policy on behalf

of member councils. The Policy Executive consists of 15 district representatives and the

President. The Policy Executive appoints three Directors to join the LGAQ President in

forming the LGAQ Board and meets 6 times per year to discuss and determine LGAQ policy.

The 15 representatives are elected to the Policy Executive from ‘districts’ by the members of

those districts. The State is divided into 12 districts, with most districts represented by one

member, as per the extract from the Constitution below:

The Districts are represented on the Policy Executive as follows:

a) in the case of District No. 1 (Brisbane City Council), by one Member appointed by the

Brisbane City Council;

b) in the case of District No. 2 (South East), by three Members elected by the Members

included in that District;

c) in the case of District No 12 (Aboriginal and Island Councils), by two Members elected

by the Members of that District;

d) in all other cases, by one Member for each District elected by the Members included

in each respective District.

Local Government Association of the Northern Territory

The Local Government Association of the Northern Territory (LGANT) is governed by an

Executive that meets monthly and consists of nine members elected at a general meeting.

www.walga.asn.au 16

Two general meetings are held per year and Executive Members are elected for a two year

term.

The President is elected at a general meeting by the members, as are the two vice

presidents. One vice president is elected by municipal councils and one vice president is

elected by regional and shire councils.

One member of the Executive is to be from the City of Darwin.

To nominate for a position of the Executive, an elected member must have the support of

their council through a council resolution.

Local Government New Zealand

The President of Local Government New Zealand (LGNZ) is elected by a ballot of members

at an annual general meeting.

The board is comprised of the President, representatives from regional groups of Local

Governments called Zones and representatives from groups of similar Local Governments

called Sector Groups.

Sector Groups are formed on the basis of population, as follows:

Metropolitan Group – population above 90,000

Provincial Group – population between 20,000 and 90,000

Rural Group – population less than 20,000

Regional Group – all regional councils and unitary authorities

The composition of the 15 member board, called the National Council, is as follows:

President

Two representatives from Zone one;

One representative from each of Zone two, three, four, five, and six;

Three representatives from the Metropolitan Sector Group;

Two representatives from the Regional Sector Group; and,

One representative from each of the Provincial and Rural Groups.

It is understood that LGNZ recently reviewed their governance arrangements and a proposal

will be considered at LGNZ’s upcoming AGM in July 2019 to add two members to their

governing board. It is proposed that the Mayor of Auckland will become a member of the

governing board as of right, and it is proposed that a Maori representative will be added to

the board.

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Working Group Deliberations

The Working Group discussed strengths and weaknesses of the current model, and then

discussed options for consideration.

Strengths of the Current Model

The Working Group identified the following key strengths, with additional comments shown

in italics. Headings, also in italics, were added to group some of the strengths together.

State-wide Representation

State-wide representation

All Zones have a voice

Blanket coverage of the state

Single Association was an absolute positive and our biggest strength is one voice

United voice of the sector

Input to policy development from the entire state

The current model provides input to policy development from the entire sector

Potential of advocacy strength – Potential to realise greater advocacy strength

dependant on empowering State Council

Metropolitan / Country Balance

50/50 country/metropolitan balance

Fair representation of the entire state

As one organisation, country and metro issues are considered – Sector positions

should be aggregated around metro and regional issues rather than seeking to

shoehorn all into one consolidated position.

Rotation of President from metro to country

Rotation of Presidency – fair voice for country and metro

Zones

Policy making – from the grassroots up through the Zones to State Council

Zones provide a broader purpose than just deliberating the on WALGA agenda

Presentations and deputations at Zone meetings

State Council

State Council: broader representation leads to more balanced decision making

Responsiveness of State Council – Still room from improvement in terms of timing of

decision making

Policy making through State Council – not the AGM

No term limits for State Councillors

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Diversity of skillsets – could be enhanced with greater attention paid to individual’s

skills and backgrounds

Diversity and understanding of opinions

Executive Committee structure is a positive with the ability to look after the business

of WALGA – Conceptually we agree, in practice this needs further work.

Processes to elect president and deputy (i.e. elected from and by State Council)

Policy Teams and Policy Forums

Ability to form policy forums

Policy teams and policy forums successfully filter sector feedback

Presidency limit of two two-year terms

Content of agendas are informative and appropriate – Content can be excessive;

content needs to be streamlined

Use of interim submissions makes WALGA more agile

Networking / connectivity with peers and colleagues

Dissemination of information through a broad representative base is more effective

Equal voice – equal opportunity to contribute to policy development

Apolitical – not aligned to political parties. Works with current Government. –

Organisation needs to be apolitical noting individuals will have their own persuasions.

Operations

Sound financial and fiscal management

Good range of services – value proposition for members needs consistent review

Low fees

Strong business, and revenue generation from business model – Opportunity to

enhance through better promotion of WALGA services; therefore we can employ

good staff

Range of services that WALGA provides – Services need to be reviewed to ensure

value for members

Quality and professionalism of staff

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Weaknesses of the Current Model

The Working Group identified the following key weaknesses, with additional comments

shown in italics. Headings, also in italics, were added to group some of the weaknesses

together.

Executive Committee

The Executive Committee doesn’t have or exercise its delegation

State Council doesn’t own the budget

Disconnect between the Executive Committee and State Council

President: Term limits and rotation

Losing experience due to term limits of Deputy President and President

President should be statesperson / apolitical – best person for the job

Rotating State Council Presidency may prevent best candidate from securing the

position

State Councillor: Role of State Councillor, including Term Limits, and Desirability and

Knowledge of Position

Lack of induction for potential State Councillors

Some zones don’t appear to value representation on State Council

Being a State Councillor isn’t always seen as desirable

Reinforcing role of State Council to individual Councils and Councillors – not generally

aware of State Council role

State Councillors need to be more accountable to their Zone

Too slow to regenerate State Councillors – no term limit on State Councillors

No term limit for State Councillors

Lack of experience of newly elected State Councillors

Time commitment required to commit effectively to State Council role

Volume of material to be considered at Zone and State Council meetings

Zone agenda items submitted by individual councillors without the support of the

member local government

Lack of consistency in how Zone processes are applied

Level of engagement by zone members. Not prepared and limited contribution across

zone

Policy teams of State Council not always outcome focussed – Maybe too short of a

meeting

Inequity of support provided to Zones by WALGA

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Frequency of State Council meetings

Timelines for progressing policy issues from zones to State Council – State Council

a lot quicker over the last few years with the use of emerging issues and interim

submissions. Still can improve.

Timing of revised agenda distribution – too soon before the State Council meeting

Explanation of 50/50 split – AGM is different to State Council

Options for Consideration

The Working Group developed some initial options for change before landing on the

recommendations, which are detailed in the following section.

State Councillor Profile and Role

The Working Group discussed the role, profile, remuneration, expectations and possibility of

term limits for State Councillors.

In particular, there was a focus on seeking to lift the profile of a State Councillor to make it a

desirable and aspirational office. There was discussion around the remuneration for State

Councillors and protocols and expectations.

Other discussion points were:

Should there be more information in the annual report regarding State Councillor

involvement and attendance at committees and zone meetings?

Should there be a minimum experience requirement to become a State Councillor?

Should there be a specific skill requirement to be become a State Councillor?

Should there be term limits for State Councillors?

Ultimately the Working Group determined not to recommend any term limits or skill or

experience limits for State Councillors. Instead, the Working Group recommends the

development of a prospectus to promote WALGA, the role of State Councillors, the

importance of Zones and the role of being a Zone delegate.

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Two Tier Structure

The Working Group also discussed options for implementing a two-tier governance structure.

Such a model would involve State Council retaining responsibility for policy and strategic

planning, with a board or executive committee with delegated responsibility for the business

and finances of WALGA.

It was envisaged in Working Group deliberations that the Board or Executive Committee

would be appointed by State Council and comprise the following membership:

President (Chair)

Deputy President

Three Country State Councillors – elected by and from State Council

Three Metropolitan State Councillors – elected by and from State Council

An independent representative with high-level finance or business experience

Ultimately the Working Group resolved not to recommend a two-tier structure, however the

Working Group believes that this is a model that may be worth pursuing in the future.

Zones

The Working Group discussed the Zone structure and how WALGA supports the Zones. The

Working Group endorsed the principle that Zones are self-governing and autonomous.

The Working Group discussed development of a prospectus to be provided to Elected

Members about the role of WALGA, the role of being a Zone delegate, the role of State

Council and other important information. Further discussion regarding the prospectus is

included in the recommendations section below.

The Working Group discussed that some Zone motions are submitted to the Zone by

individual Zone delegates without a Council resolution. In response the Working Group

support development of a guideline, to be included in the prospectus stating that “whilst it is

best practice that a Zone motion is supported by a Council decision, Zone delegates can

raise items at Zone meetings without a Council decision.”

Regional Capitals Alliance Submission

The Regional Capitals Alliance made a submission to the Working Group proposing that

State Council be comprised of ten members appointed from groupings of Local Governments

based on the Salaries and Allowances Tribunal bands. The Alliance’s submission is

reproduced below:

www.walga.asn.au 22

Rather than 26 members of the WALGA state council, the Alliance is proposing that the state

council membership be retained within 10 members. Ten members would be made up of four

metropolitan and four regional council representatives based on the following criteria and two

additional Independent members (with one as an Independent Chair).

Discussion around the number of Council representatives from within each Band, both

metropolitan and country, considered the number of local governments they represented and

the population/geographical distribution across the bands to achieve what is believed to be

a more balanced representation across the sector.

The Alliance recommends WALGA consider a Local Government representation model with

a total membership on the State Council of ten, based on the Local Government Band

categories giving equal representation from Metropolitan and Country, notionally four

members each drawn representatively from Local Governments as suggested below:

2 representatives from Band 1 Metropolitan

1 representative from Band 2 Metropolitan

1 representative from Band 3 and 4 Metropolitan

1 representative from Band 1 Country

1 representative from Band 2 Country

2 representatives from Band 3 and 4 Country

In addition to the above representatives it was agreed that two independent representatives

also be on Council, one of which would be chair. The selection process would involve

members being selected from within their bands and nominations being forwarded to a

nominations committee for final determination of members where criteria such as skills base

could be also used to achieve a balance of skills and experience for the Council membership.

This was considered to be a more balanced representation model.

The mechanism for state council members to consult with councils within their bands would

be left up to the nominated representative on the state council. In the case of a group-one,

and potentially a group-two country councils, this may be done via the Regional Capital

Alliance of Western Australia.

This model will in no way replace the need for governments and local governments to form

voluntary regional groups such as the Kimberley Regional group or to interfere with local

issues as they do now.

The Working Group thanked the Regional Capitals Alliance for their submission, but decided

against progressing with the Alliance’s suggestions.

There are 91 Local Governments in the group that combines Band 3 and 4 Country, and the

Working Group considered that this would be too large a group of members to be represented

by only two State Councillors.

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Further, as discussed above, the Working Group identified broad state-wide representation

and the Zone process as strengths of the current model. The Working Group considered that

the Alliance’s proposal would not facilitate a workable Zone model as Band 3 and 4 Country

Local Governments span the state.

Other Issues

The Working Group explored a range of other issues including the process for the

development of interim submissions, State Council’s committee structure and the format of

the State Council agenda. These issues are addressed in the Recommendations section

below.

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Recommendations

The Working Group has recommended a number of reforms, which are grouped around a

range of themes, below:

1. State Council Composition;

2. Role of State Councillor;

3. Elected Member Prospectus;

4. Committee Structure;

5. Submission Process;

6. Zone Support and Guidance; and,

7. State Council Agenda.

State Council Composition

The Working Group endorsed the existing composition of State Council, including the method

of election from Zones.

In particular, during discussions, two of the major strengths identified by the Working Group

were:

Equal representation from both the country and metropolitan constituencies; and,

The State-wide representation and input facilitated by WALGA’s Zone and State

Council structure.

Recommendation 1

That the existing composition and representational arrangements of State Council be

retained.

Deputy State Councillors

The Working Group also considered the continuing necessity for Deputy State Councillors.

State Council has never lacked a quorum without the attendance of Deputy State Councillors.

Further, it is difficult for Deputy State Councillors to meaningfully contribute to deliberations,

in many cases, due to the background knowledge developed by State Councillors over many

meetings and communications. Finally, with a governing board of 25, and with the committee

changes proposed below, it is contended that there may be sufficient governance oversight

without the need for Deputy representatives.

Conversely, the role of Deputy State Councillor provides opportunities for more Local

Government representatives to be involved in WALGA and its governance processes, and

www.walga.asn.au 25

this may provide opportunities for succession planning. Further, having Deputy State

Councillors able to step in and attend State Council meetings ensures that all Zones are

represented at meetings when State Councillors are unable to attend. On this basis, the

Working Group recommends that the role of Deputy State Councillor be retained.

Recommendation 2

That the role of Deputy State Councillor be retained.

Term Limits for State Councillors

The Working Group considered the issue of term limits for State Councillors. Currently there

is a four-year term limit for the President and Deputy President, but no term limit for State

Councillors

Following deliberations, the Working Group resolved that no term limits should be introduced

for State Councillors. State Councillors are elected by Zones to be on State Council, and the

Working Group considered it important that Zones have the ability to elect the “best person

for the job”.

Recommendation 3

That no term limits be introduced for the role of State Councillor.

Role of State Councillor

State Councillors, as directors of a Board, are required to act consistently in the “best

interests of the organisation as a whole”. This effectively means that the duties of a State

Councillor are owed to all Member Local Governments.

Whilst it is recognised that State Councillors must represent the interests of their respective

Zones, the interests of the Association and its collective membership must always come first.

State Councillors are also expected to report back to Zones about the policy and advocacy

direction of State Council. To facilitate this, the secretariat has been providing State

Councillors with a State Councillor report guide in advance of Zone meetings.

There is also an expectation that State Councillors will represent WALGA to members and

promote WALGA’s services, and policy and advocacy positions and activities to the broader

membership.

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In addition, following a review of the Member Advisor Program, it is proposed that some State

Councillors could be invited to undertake the role of Member Advisor. The aim of the program

is to provide Councils and Elected Members with information and resources from a trusted

peer. Member Advisors will aim to attend an ordinary Council meeting of each member

Council once in a two year period and also be contactable via email and phone to assist

individual Elected Members regarding any questions they may have in undertaking their roles

on Council.

Recommendation 4

That a Panel of Member Advisors be established comprising of State Councillors and

other Elected Members appointed by the President.

Elected Member Prospectus

The Working Group identified the need to promote key information about WALGA, the role

of State Councillors and the role of Zones to ensure that becoming a State Councillor, and a

Zone delegate, is a respected and sought after position.

It is proposed that a Prospectus be developed and distributed to all Elected Members

immediately following the October 2019 Local Government elections. The Prospectus will be

used to educate Elected Members about the Association and the avenues for involvement

as a Zone delegate and a State Councillor.

Recommendation 5

That a Prospectus be prepared and distributed to all Local Governments and all

Elected Members following the Local Government elections every two years

highlighting the following information, with the aim of promoting the key role of Zone

delegates regionally and the key role of State Councillors in leading advocacy and

policy development on behalf of the Local Government in Western Australia:

Role of WALGA as the principal Local Government peak body;

Role of State Council as WALGA’s governing body;

Role of a State Councillor as a key decision-maker regarding policy, advocacy

and provision of services for and on behalf of the Local Government sector;

Commitment required to be a State Councillor, including attendance at

meetings, advocate for WALGA and the Local Government sector, report back

to Zones on WALGA and State Council activity, and potentially as a Member

Advisor Program mentor;

Opportunities for State Councillors to advocate to Government on behalf of

their region and / or particular policy issues;

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Role of Zones as key participants into state-level advocacy and policy

development, including the formal required role of Zones and the additional

opportunities for Zones;

Role of Zone delegates as Council representatives at the regional level,

including the obligation to report back to Council on Zone activities; and,

Explanation that, while it is best practice that a Zone motion is submitted by

way of a Council decision, Zone delegates can submit motions to a meeting of

a Zone, which is an autonomous, self-governing body, and it is recommended

that the Zone is advised whether the motion has the backing of a Council

resolution.

Committee Structure

The Working Group discussed an amended process for dealing with interim submissions to

Government, which would change the purpose of the Executive Committee to be solely

focused on finance and WALGA’s business services, which includes preferred supply

arrangements, procurement, employee relations, training and recruitment. In making this

change, the Executive Committee would revert back to being called the Finance and Services

Committee, providing a sharper focus and more defined role for the committee.

In addition, it is proposed that the Policy Teams would have a stronger role in shaping the

development of WALGA’s policy positions and submissions to Government.

Committee Membership

The following membership structure of the Finance and Services Committee and the Policy

Teams is proposed as follows:

Finance and Services Committee

Environment and Waste Policy Team

Governance and Organisational Services Policy Team

Infrastructure Policy Team

People and Place Policy Team

President (Chair) Four State Councillors

Five State Councillors




External member with finance experience

Every State Councillor would be a member of only one of the five committees providing every

State Councillor with a focus on either the finance and business services of WALGA, or a

specific policy portfolio. It is anticipated that these changes would encourage State

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Councillors to feel ownership of their portfolio, whether it be in relation to WALGA’s business

services, or a particular policy and advocacy portfolio.

It is proposed that the external member on the Finance and Services committee be drawn

from a wider field than just the Local Government sector. That is, there may be considerable

value in appointing an external member from the private or not-for-profit sector to the

committee. This appointment would be made by State Council upon the recommendation of

the WALGA Selection Committee, as is current practice.

While the current Executive Committee has responsibility for the CEO’s performance review,

it is proposed that a separate CEO Performance Review Committee would be established

from State Council, and chaired by the President, that would meet at least once per year.

Finance and Services Committee

The terms of reference of the Finance and Services Committee is proposed as follows. This

reflects the terms of reference of the current Executive Committee, with the removal of the

three struck out points as per below:

On behalf of State Council, and in accordance with any policies, directions or limitations set

by State Council, undertake the following functions:

Determining key directions in relation to the establishment and/or development of new and current business opportunities that result in the delivery of outputs which enhance the financial and operational capacity of members and the Association.

Adoption of business plans for the Association’s service delivery units that deliver the key objectives within the Association’s Strategic Plan, with regular monitoring of outcomes against agreed performance indicators.

Oversee the financial management of the Association, including the recommendation of a draft annual Governance Budget to State Council, long term financial planning, monitoring/assessment of financial reports, approving and/or recommending budgetary reallocations to State Council, committing or reallocating reserve funds for special purposes, and auditing and presentation of the Association’s annual accounts.

Internal audit including monitoring/assessing compliance against financial and asset management and internal control policies.

Oversee the delivery of business development, business management, human resource management and information management and corporate services.

Establish a risk governance structure which ensures that management has implemented sound risk management policies and procedures across the Association, and which is regularly reviewed.

Establish risk management and internal control performance indicators that are regularly evaluated through internal and external audit processes.

Regularly report to State Council on the key activities and major decisions of the Committee.

www.walga.asn.au 29

Review and provide feedback on interim submissions, either in or out of session, to be put forward to government or other agencies.

Act as the primary policy and advocacy support to the President and the Association.

Manage the Chief Executive Officer Performance Review process on behalf of State Council.

Policy Teams

The terms of reference of the Policy Teams is proposed as follows, with the addition of the

underlined points relating to interim submissions, and the Chair of the Policy Team playing a

key role in advocacy:

To advise the State Council on the development, implementation and review of Association policy in the relevant areas.

To ensure all policy proposals are considered in terms of their economic, social and environmental impacts.

To monitor and report to State Council on the activities of State and Federal Governments in relevant policy areas.

To monitor and report to State Council on the activities of the major political parties in Opposition in relevant policy areas.

To investigate, research and advise the State Council on emerging strategic issues relative to the relevant policy area.

To consult with Member Local Governments, key external agencies and other stakeholders on policy issues in the relevant area for the development of recommendations to the State Council.

To shape the preparation of interim submissions prior to their presentation to State Council for consideration and endorsement.

To assist the President, Deputy President, State Councillors and CEO in the advocacy of the Association’s policy positions, with the Policy Team Chair playing a key role in advocacy to Government on policy positions related to the portfolio, including accompanying the President, Deputy President and CEO to ministerial meetings.

To promote the Association’s policy positions to Member Local Governments.

To action directions from the State Council.

To develop, monitor and report on Key Result Areas as endorsed by the State Council.

Committee Assignment Process

Committee assignments would be determined by State Council at the March meeting in every

even year (i.e. 2020, 2022 etc) following the election of the President and Deputy President.

This would provide an opportunity for State Councillors to consider which of the five

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committees they would like to nominate for following the State Council induction to be held

at the December meeting in odd years (i.e. 2019, 2021 etc).

It is not proposed to make changes to the Selection Committee or Honours Panel.

Role of State Council

A key benefit of the proposed changes to State Council’s committees, as proposed above,

is that a significant proportion of the detailed policy and finance work will be undertaken by

committees, allowing State Council a more strategic focus. State Council’s role would be to

provide strategic direction, oversee the work of committees to ensure coordination and

alignment to strategy, endorsement of policy positions, and endorsement of the budget.

Recommendation 6

That:

1. The Committee structure, as outlined above be adopted by State Council, to

take effect from December 2019;

2. The Corporate Governance Charter be amended to reflect the changes to the

Committee Terms of Reference and membership, as outlined; and,

3. A CEO Performance Review Committee be established, to be chaired by the

President and to meet at least once per year.

Process for Preparation and Consideration of Submissions

The changes to the committee structure above, would facilitate the proposed changes to the

process for the development of submissions when there is insufficient time for a submission

to be included in the State Council agenda.

Where time permits, the first preference would be for a submission to be prepared, in

consultation with the respective Policy Team, and included in the State Council agenda for

decision to facilitate consideration and input from Zones and State Council.

In developing submissions, when inclusion in the State Council agenda is impractical, the

following process is proposed in the middle column, and is presented adjacent to the current

process, in the right column, to highlight and explain the differences.

www.walga.asn.au 31

Proposed Submission Process Current Interim Submission Process

Preparation by Secretariat

WALGA staff prepare interim submission under the guidance of their Executive Manager, with reference to existing positions of State Council, input from Policy Team and / or contemporary feedback from the Local Government sector.

WALGA staff prepare interim submission under the guidance of their Executive Manager, with reference to existing positions of State Council and / or contemporary feedback from the Local Government sector.

Policy Team Input

Policy Team meet to amend or endorse the draft submission to proceed to State Council. Potential for meeting to be held by video-conference.

Draft interim submission is emailed to Policy Team for feedback.

Endorsement Draft submission is considered by State Council by Flying Minute using the Board Effect Platform.

Draft interim submission is endorsed for submission to Government by Executive Committee out-of-session.

Basis on which submitted to Government

Submission is put forward to Government as an endorsed State Council position.

Submission is put forward to Government as an interim position, subject to subsequent State Council endorsement.

Inclusion in State Council agenda

Submission is included in the next State Council agenda as an item for noting.

Submission is considered by Zones and State Council as an item for decision as part of the next State Council agenda.

Recommendation 7

That the following process be endorsed for the development, consideration and

endorsement of submissions Government and other stakeholders (when there is

insufficient time for it to be included in the State Council agenda), and the Corporate

Governance Charter be amended to reflect the changes:

1. WALGA staff prepare interim submission under the guidance of their Executive

Manager, with reference to existing positions of State Council, input from

Policy Team and / or contemporary feedback from the Local Government

sector.

2. Policy Team meet to amend or endorse the draft submission to proceed to State

Council, with the meetings of the Policy Team to be held via teleconference or

videoconference where practicable.

3. Draft submission is considered by State Council by Flying Minute using the

Board Effect platform.

www.walga.asn.au 32

4. Submission is put forward to Government as an endorsed State Council

position.

5. Submission is included in the next State Council agenda as an item for noting.

Zone Support and Guidance

The Working Group has discussed the level of service, and the nature of the guidance

provided to Zones to assist them to perform their role and undertake other functions.

During working group deliberations it was suggested that WALGA could prepare guidance

notes for Zones about their role and opportunities to undertake additional functions. This

information will be included in the prospectus discussed above.

In addition, it has been suggested that the secretariat should engage with Zones about the

type of services and support sought from WALGA.

Currently, most Zones employ an independent executive officer, while WALGA provides

secretariat support for the following Zones:

Central Metropolitan Zone

East Metropolitan Zone

Gascoyne Country Zone

Great Eastern Country Zone

North Metropolitan Zone

Peel Country Zone

South East Metropolitan Zone, and

South Metropolitan Zone

WALGA’s secretariat service is offered as a baseline service at no cost to the Zone.

In the early stages of the development of WALGA’s 2019-2020 budget preparation, a

business case was developed outlining an option for WALGA to provide secretariat services

to all Zones. Under the scenario explored in the business case, WALGA would prepare

agendas and minutes for all Zones, and each Zone would be allocated a senior staff member

to act as the liaison between the Zone and the broader WALGA secretariat.

Recommendation 8

That information regarding the role of Zones, and Zone delegates, and the process for

submission of Zone motions, be prepared and circulated to Zones, and included in the

WALGA Elected Member Prospectus and the Corporate Governance Charter.

www.walga.asn.au 33

Recommendation 9

That:

1. The secretariat engage with Zones regarding the services and support that

WALGA provides to Zones; and,

2. The secretariat continues to offer baseline Zone secretariat services to Zones

as appropriate.

State Council Agenda

The Working Group has discussed the content of the State Council agenda, particularly

highlighting the volume of information that is provided to Zone delegates and State

Councillors.

It is proposed that the secretariat commit to reducing the length of agenda items and prepare

reports that are more focused. Specifically, there will be an aim to limit agenda items to two

pages with a more in-depth ‘in brief’ section, which will be used as an executive summary of

the agenda item. A sample item is attached as an appendix.

It is also proposed, in conjunction with the more focused presentation of agenda items, that

hard copy production of the State Council agenda cease. Currently, the agenda is emailed

to State Councillors, Local Government CEOs and Zone delegates three to four weeks prior

to the State Council meeting, and hard copy ‘blue books’ are posted and arrive with delegates

approximately two weeks prior to the State Council meeting, usually, but not always, in time

for the Zone meeting.

WALGA has budgeted $46,344 for printing State Council agendas in the 2019-2020 financial

year. This figure does not include the cost of postage to distribute the agendas, nor the staff

time used to pack envelopes and packages. In addition, the reliability and timeliness of the

postal service is diminishing, particularly to country and remote areas.

It is argued that the money spent on printing, packing and posting State Council agendas

would be better invested in providing more support to Zones or in other aspects of WALGA’s

operations.

For the reasons discussed above, it is proposed that the State Council agenda be provided

to Local Governments and delegates in electronic format only, commencing in March 2020.

Finally, it is proposed that a process is implemented whereby State Council agenda items for

decision are considered by Councils, either in formal Council meetings, or in briefing or

concept forums. It would be beneficial for State Council agenda items for decision to be

considered by Council in a formal or informal meeting to:

www.walga.asn.au 34

Enhance awareness of contemporary strategic advocacy and policy issues; and,

Enable the Councils to provide guidance and direction to their Zone representatives.

Recommendation 10

That:

1. The secretariat develop templates and processes to reduce the length of State

Council agenda items;

2. Following consultation with the sector, production of hard copy agendas cease

beginning with the March 2020 meeting of State Council; and,

3. A process be implemented, in consultation with the Local Government sector,

to enable Councils to consider items for decision in the State Council agenda

to raise awareness of contemporary strategic advocacy and policy issues and

to enable Councils to provide guidance and direction to their Zone

representatives.

www.walga.asn.au 35

Consultation and Implementation

This report will be presented to State Council as an item under separate cover at the

6 September 2019 State Council meeting.

A number of the recommendations proposed by the Working Group are recommended for

immediate implementation because they have a time critical component due to the Local

Government elections and the election of State Councillors and are:

Operational in nature representing core activities – recommendations 5 and 8; or,

Focused on internal State Council processes – recommendations 6 and 7.

It is recommended that consultation be undertaken on the following recommendations

relating to:

The governance structure – recommendations 1, 2, 3 and 4;

Zone support and guidance – recommendation 9; and,

State Council agenda processes – recommendation 10.

It is recommended that the full report be provided to WALGA members immediately following

the 6 September 2019 meeting of State Council, with feedback sought by late October. An

item for Zone and State Council consideration will then be included in the December 2019

State Council agenda.

This broadly aligns with the methodology outlined on pages 6 and 7 of this report.

www.walga.asn.au 38

Appendix 1 – Sample State Council Agenda Item

Interim Submission to Salaries and Allowances Tribunal – Elected Member Fees and Allowances (05-034-01-0019 TL)

By Tim Lane, Manager Strategy and Association Governance

Recommendation

That the interim submission to the Salaries and Allowances Tribunal relating to Elected Member Fees and Allowances be endorsed.

In Brief

WALGA has prepared a submission to the Salaries and Allowances Tribunal relating to Fees and Allowances payable to Elected Members to input into the Tribunal’s 2019 determination;

The Submission argues for an increase on the basis of the following four main arguments:

i. Vibrant democracy and good governance: fees and allowances payable to Elected Members should be sufficient to ensure that a diversity of candidates from a range of backgrounds. Further, corporate governance literature suggests that diverse leadership groups make better decisions;

ii. Demands of the role: as the complexity of Local Government increases, and the demands placed upon Elected Members grow in the social media age, the remuneration paid to Elected Members for their significant time commitment must compensate for the personal and opportunity costs of taking on a significant community leadership position;

iii. Skills and training: as Elected Members continue to undertake training – and with the implementation of the State Government’s universal Elected Member training policy likely to occur in the near future – the time that Elected Members spend on professional development should be recognised by the fees and allowances framework; and,

iv. Economic erosion: in recent years there have been a number of ‘no increase’ determinations in relation to Elected Member fees and allowances, which means that the relative value of Elected Member fees and allowances have eroded over time. WALGA contends that this trend should be arrested and fees and allowances should be increased.

WALGA’s submission argues for an increase to the Elected Member fees and allowances payable to Elected Members in the order of three percent, with the Salaries and Allowances Tribunal to consider appropriate economic indicators and increasing training requirements in future years.

Attachment

Submission to the Salaries and Allowances Tribunal: Local Government Elected Member Fees and Allowances

Policy Implications (Only if relevant)

WALGA previously advocated for the Salaries and Allowances Tribunal to be given jurisdictional authority to determine Elected Member fees and allowances. The attached interim submission is consistent with existing WALGA policy.

www.walga.asn.au 39

Budgetary Implications (Only if relevant)

Background

WALGA advocated strongly for the Salaries and Allowances Tribunal to be given jurisdictional authority to determine Elected Member fees and allowances when fees and allowances were contained in regulations. Following WALGA’s advocacy, the Salaries and Allowances Tribunal has been determining Elected Member fees and allowances since 2013. WALGA, along with Local Governments and other stakeholders, was invited to make a submission in relation to the Salaries and Allowances Tribunal’s current remuneration inquiry relating to Local Government Chief Executive Officers and Elected Members. WALGA has developed a submission in relation to Elected Member remuneration on behalf of the Local Government sector due to increasing feedback that the current remuneration framework is inadequate for the increasing complexity of Local Government and the growing demands of the role of an Elected Member. The attached submission was endorsed by State Council’s Executive Committee at their 20 February meeting and submitted to the Salaries and Allowances Tribunal on 21 February 2019 on an interim basis pending Zone and State Council consideration.

Comment

The Submission argues for an increase to Elected Member fees and allowances in the order of three percent on the basis of four main arguments. Firstly, Local Government plays a key role in Australian democracy and fees and allowances payable to Elected Members should be sufficient to ensure a diversity of candidates from a range of backgrounds are willing and able to nominate for important community representative positions. In addition, the corporate governance literature argues convincingly, with empirical evidence, that diverse boards and leadership teams make better decisions. Secondly, the complexity of Local Government responsibilities are increasing and so are the demands placed upon Local Government Elected Members in the social media age. The fees and allowances framework must acknowledge the personal and opportunity costs faced by Elected Members in undertaking their role. Thirdly, as Elected Members continue to engage in training and professional development – and with the implementation of the State Government’s universal Elected Member training policy expected in the near future – the time that Elected Members spend on professional development should be recognised by the fees and allowances framework. Finally, there have been a number of ‘no increase’ determinations in recent years, partly due to the broader economic context in Western Australia, but this has led to the economic erosion of the fees and allowances relative to the broader community. WALGA’s submission contends that this economic erosion should be arrested and reversed. WALGA’s submission argues for an increase to the Elected Member fees and allowances payable to Elected Members in the order of three percent, with the Salaries and Allowances Tribunal to consider appropriate economic indicators and increasing training requirements in future years. The interim submission is attached for State Council consideration.

SHIRE OF KOORDA

MONTHLY FINANCIAL REPORT(Containing the Statement of Financial Activity)

For the period ending 30 September 2019

LOCAL GOVERNMENT ACT 1995LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

TABLE OF CONTENTS

Monthly Summary Information 2

Statement of Financial Activity by Program 5

Statement of Financial Activity by Nature or Type 7

Note 1 Statement of Financial Activity Information 8

Note 2 Cash and Financial Assets 9

Note 3 Receivables 10

Note 4 Other assets 11

Note 5 Payables 12

Note 6 Rate Revenue 13

Note 7 Disposal of Assets 15

Note 8 Capital Acquisitions 16

Note 9 Cash Reserves 18

Note 10 Other Liabilities 20

Note 11 Operating grants and contributions 21

Note 12 Non operating grants and contributions 22

Note 13 Trust Fund 23

Note 14 Variance 24

MONTHLY FINANCIAL REPORTFOR THE PERIOD ENDED 30 SEPTEMBER 2019 INFORMATION

PREPARATION TIMING AND REVIEW SIGNIFICANT ACCOUNTING POLICES

Date prepared: All known transactions up to 07 October 2019 GOODS AND SERVICES TAXRevenues, expenses and assets are recognised net of the

BASIS OF PREPARATION amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

REPORT PURPOSE Receivables and payables are stated inclusive of GST This report is prepared to meet the requirements of Local receivable or payable. The net amount of GST recoverable Government (Financial Management) Regulations 1996 , from, or payable to, the ATO is included with receivables or Regulation 34 . Note: The statements and accompanying payables in the statement of financial position. Cash flows notes are prepared based on all transactions recorded at are presented on a gross basis. The GST components of cash the time of preparation and may vary due to transactions flows arising from investing or financing activities which being processed for the reporting period after the date of are recoverable from, or payable to, the ATO are presented preparation. as operating cash flows.

BASIS OF ACCOUNTING CRITICAL ACCOUNTING ESTIMATESThis statement comprises a special purpose financial The preparation of a financial report in conformity with report which has been prepared in accordance with Australian Accounting Standards requires management to Australian Accounting Standards (as they apply to local make judgements, estimates and assumptions that effect governments and not-for-profit entities and to the extent the application of policies and reported amounts of assets they are not in-consistent with the Local Government Act and liabilities, income and expenses. The estimates and 1995 and accompanying regulations), Australian associated assumptions are based on historical experience Accounting Interpretations, other authoritative and various other factors that are believed to be pronouncements of the Australian Accounting Standards reasonable under the circumstances; the results of which Board, the Local Government Act 1995 and accompanying form the basis of making the judgements about carrying regulations. Accounting policies which have been adopted values of assets and liabilities that are not readily in the preparation of this financial report have been apparent from other sources. Actual results may differ from consistently applied unless stated otherwise. these estimates.

Except for cash flow and rate setting information, the ROUNDING OFF FIGURESreport has been prepared on the accrual basis and is All figures shown in this statement are rounded to the based on historical costs, modified, where applicable, by nearest dollar.the measurement at fair value of selected non-current assets, financial assets and liabilities.

THE LOCAL GOVERNMENT REPORTING ENTITYAll Funds through which the Council controls resources to carry on its functions have been included in this statement. In the process of reporting on the local government as a single unit, all transactions and balances between those funds (for example, loans and transfers between Funds) have been eliminated. All monies held in the Trust Fund are excluded from the statement, but a separate statement ofthose monies appears at Note 13.

SHIRE OF KOORDA | 2Please refer to the compilation report

MONTHLY FINANCIAL REPORTFOR THE PERIOD ENDED 30 SEPTEMBER 2019 SUMMARY GRAPHS

OPERATING REVENUE OPERATING EXPENSES

CAPITAL REVENUE CAPITAL EXPENSES

This information is to be read in conjunction with the accompanying Financial Statements and Notes.

Rates62%

Operating Grants, Subsidies and Contributions14%

Fees and Charges15%

Service Charges0%

Interest Earnings2%

Other Revenue4%

Profit on Disposal of Assets3%

Employee Costs31%

Materials and Contracts19%

Utility Charges1%

Depreciation on Non-Current Assets42%

Insurance Expenses6%

Other Expenditure1%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Amou

nt $

('00

0s)

Budget Operating Expenses -v-YTD Actual

Budget 2019-20

Actual 2019-20

0

500

1,000

1,500

2,000

2,500

3,000

3,500


Amou

nt $

('00

0s)

Budget Operating Revenues -v- Actual

Budget 2019-20

Actual 2019-20

0

200

400

600

800

1,000

1,200


Amou

nt $

('00

0s)

Budget Capital Revenue -v- Actual

Budget 2019-20

Actual 2019-20

0

500

1,000

1,500

2,000

2,500

3,000


Amou

nt $

('00

0s)

Budget Capital Expenses -v- Actual

Budget 2019-20

Actual 2019-20


KEY TERMS AND DESCRIPTIONS

FOR THE PERIOD ENDED 30 SEPTEMBER 2019 STATUTORY REPORTING PROGRAMS

ACTIVITIESGOVERNANCE

To provide decision making process for the Includes the activities of members of Council and the administrative support available to the

efficient allocation of scarce resources. Council for the provision of governance of the district. Other costs relate to the task of

assisting elected members and ratepayers on matters which do not concern specific

Council services.

GENERAL PURPOSE FUNDING

To collect revenue to allow for the provision of Rates, general purpose government grants and interest revenue.

services.

LAW, ORDER, PUBLIC SAFETY

To provide services to help ensure a safer and Supervision and enforcement of various local laws realting to fire prevention, animal control

environmentally conscious community. and other aspects of public safety including emergency services.

HEALTH

To provide an operational framework for Inspection of food outlets and their control, provision of meat inspection services, noise

environmental and community health. control and waste disposal compliance.

EDUCATION AND WELFARE

To provide services to disadvantaged persons, Maintenance of child minding centre, playgroup centre, senior citizen centre and aged care

the elderly, children and youth. centre. Provision and maintenance of home and community care programs and youth

services.

HOUSING

To provde and maintain elderly residents Provision and maintenance of elderly residents housing.

housing.

COMMUNITY AMENITIES

To provide services required by the community. Rubbish collection services, operation of rubbish disposal sites, litter control, construction

and maintenance or urban storm water drains, protection of the environment and

administration of town planning schemes, cemetery and public conveniences.

RECREATION AND CULTURE

To establish and effectively manage Maintenance of public halls, civic centres, aquatic centre, beaches, recreation centres and

infrastructure and resources which will help the various sporting facilities. Provision and maintenance of parks, gardens and playgrounds.

social well being of the community. Operation of library, museum and other cultural facilities.

TRANSPORT

To provide safe, effective and efficient transport Construction and maintenance of roads, streets, footpaths, depots, cycle ways, parking

services to the community. facilities and traffic control. Cleaning of streets and maintenance of street trees, street

lighting etc.

ECONOMIC SERVICES

To help promote the Shire and its economic Tourism and area promotion including the maintenance and operation of a caravan park.

well being. Provision of rural services including weed control, vermin control and standpipes.

Building control.

OTHER PROPERTY AND SERVICES

To monitor and control Council's overheads Private works operation, plant repair and operation costs and engineering operation costs.

operating accounts.

Shire operations as disclosed in these financial statements encompass the following service orientated activities/programs.


STATEMENT OF FINANCIAL ACTIVITYFOR THE PERIOD ENDED 30 SEPTEMBER 2019 STATUTORY REPORTING PROGRAMS

RefVar. $(b)-(a)

Var. % (b)-(a)/(a) Var.

Note

$ $ $ $ %Opening funding surplus / (deficit) 1(c) 821,674 821,674 1,054,444 232,770 28.33%

Revenue from operating activitiesGovernance 84,952 14,158 0 (14,158) (100.00%) q

General purpose funding - rates 6 1,066,030 1,066,030 1,063,124 (2,906) (0.27%)

General purpose funding - other 1,085,370 271,018 269,922 (1,096) (0.40%)

Law, order and public safety 17,707 250 2,257 2,007 802.80%

Health 7,060 1,752 3,471 1,719 98.12%

Housing 198,676 49,671 48,913 (758) (1.53%)

Community amenities 189,792 180,804 180,839 35 0.02%

Recreation and culture 100,621 10,652 76,121 65,469 614.62% p

Transport 81,310 144,000 54,091 (89,909) (62.44%) q

Economic services 30,740 8,276 10,768 2,492 30.11%

Other property and services 69,006 11,751 15,745 3,994 33.99%

2,931,264 1,758,362 1,725,251 (33,111)

Expenditure from operating activitiesGovernance (525,166) (119,147) (115,036) 4,111 3.45%

General purpose funding (109,923) (26,105) (26,279) (174) (0.67%)

Law, order and public safety (95,704) (27,753) (24,508) 3,245 11.69%

Health (171,075) (28,055) (20,975) 7,080 25.24%

Education and welfare (46,892) (26,854) (26,616) 238 0.89%

Housing (286,896) (71,726) (76,689) (4,963) (6.92%)

Community amenities (315,127) (80,032) (64,106) 15,926 19.90% p

Recreation and culture (981,774) (227,940) (227,317) 623 0.27%

Transport (1,675,147) (463,528) (535,836) (72,308) (15.60%) q

Economic services (252,828) (64,576) (65,784) (1,208) (1.87%)

Other property and services (5,789) (1,449) (1,541) (92) (6.35%)

(4,466,321) (1,137,165) (1,184,687) (47,522)

Non-cash amounts excluded from operating activities 1(a) 2,021,707 548,538 520,355 (28,183) (5.14%)

Amount attributable to operating activities 486,650 1,169,735 1,060,919 (108,816)

Investing ActivitiesProceeds from non-operating grants, subsidies and contributions 12 694,971 273,305 272,921 (384) (0.14%)

Proceeds from disposal of assets 7 264,000 89,407 89,407 0 0.00%

Purchase of property, plant and equipment 8 (2,725,000) (777,756) (184,957) 592,799 76.22% p

Amount attributable to investing activities (1,766,029) (415,044) 177,371 592,415

Financing ActivitiesTransfer from reserves 9 1,093,000 0 0 0 0.00%

Transfer to reserves 9 (635,295) (29,055) (29,055) 0 0.00%

Amount attributable to financing activities 457,705 (29,055) (29,055) 0

Closing funding surplus / (deficit) 1(c) 0 1,547,310 2,263,679

KEY INFORMATION

The material variance adopted by Council for the 2019-20 year is $10,000 or 10.00% whichever is the greater.This statement is to be read in conjunction with the accompanying Financial Statements and notes.

threshold. Refer to Note 14 for an explanation of the reasons for the variance.

AdoptedBudget

YTD Budget

(a)

YTD Actual

(b)

pq Indicates a variance between Year to Date (YTD) Actual and YTD Actual data as per the adopted materiality threshold. Refer to Note 2 for an explanation of the reasons for the variance.


KEY TERMS AND DESCRIPTIONSFOR THE PERIOD ENDED 30 SEPTEMBER 2019 NATURE OR TYPE DESCRIPTIONS

REVENUE EXPENSES

RATES EMPLOYEE COSTSAll rates levied under the Local Government Act 1995. All costs associate with the employment of person such asIncludes general, differential, specific area rates, minimum salaries, wages, allowances, benefits such as vehicle andrates, interim rates, back rates, ex-gratia rates, less housing, superannuation, employment expenses, removaldiscounts offered. Exclude administration fees, interest on expenses, relocation expenses, worker's compensationinstalments, interest on arrears and service charges. insurance, training costs, conferences, safety expenses,

medical examinations, fringe benefit tax, etc.OPERATING GRANTS, SUBSIDIES AND CONTRIBUTIONSRefer to all amounts received as grants, subsidies and MATERIALS AND CONTRACTScontributions that are not non-operating grants. All expenditures on materials, supplies and contracts not

classified under other headings. These include supply of NON-OPERATING GRANTS, SUBSIDIES AND CONTRIBUTIONS goods and materials, legal expenses, consultancy, Amounts received specifically for the acquisition, maintenance agreements, communication expenses, construction of new or the upgrading of non-current assets advertising expenses, membership, periodicals, paid to a local government, irrespective of whether these publications, hire expenses, rental, leases, postage and amounts are received as capital grants, subsidies, freight etc. Local governments may wish to disclose more contributions or donations. detail such as contract services, consultancy, information

technology, rental or lease expenditures.PROFIT ON ASSET DISPOSALProfit on the disposal of assets including gains on the UTILITIES (GAS, ELECTRICITY, WATER, ETC.)disposal of long term investments. Losses are disclosed Expenditures made to the respective agencies for the under the expenditure classifications. provision of power, gas or water. Exclude expenditures

incurred for the reinstatement of roadwork on behalf of FEES AND CHARGES these agencies.Revenues (other than service charges) from the use of facilities and charges made for local government services, INSURANCEsewerage rates, rentals, hire charges, fee for service, All insurance other than worker's compensation and health photocopying charges, licences, sale of goods or benefit insurance included as a cost of employment.information, fines, penalties and administration fees. Local governments may wish to disclose more detail such as LOSS ON ASSET DISPOSALrubbish collection fees, rental of property, fines and Loss on the disposal of fixed assets.penalties, other fees and charges.

DEPRECIATION ON NON-CURRENT ASSETSSERVICE CHARGES Depreciation expense raised on all classes of assets.Service charges imposed under Division 6 of Part 6 of the Local Government Act 1995 . Regulation 54 of the Local INTEREST EXPENSESGovernment (Financial Management) Regulations 1996 Interest and other costs of finance paid, including costs of identifies these as television and radio broadcasting, finance for loan debentures, overdraft accommodation and underground electricity and neighbourhood surveillance refinancing expenses.services. Exclude rubbish removal charges. Interest and other items of a similar nature received from bank and OTHER EXPENDITUREinvestment accounts, interest on rate instalments, interest Statutory fees, taxes, provision for bad debts, member's fees on rate arrears and interest on debtors. or State taxes. Donations and subsidies made to community

groups.INTEREST EARNINGSInterest and other items of a similar nature received from bank and investment accounts, interest on rate instalments, interest on rate arrears and interest on debtors.

OTHER REVENUE / INCOMEOther revenue, which can not be classified under the above headings, includes dividends, discounts, rebates etc.


STATEMENT OF FINANCIAL ACTIVITYFOR THE PERIOD ENDED 30 SEPTEMBER 2019 BY NATURE OR TYPE

RefVar. $(b)-(a)

Var. % (b)-(a)/(a) Var.

Note

$ $ $ $ %

Opening funding surplus / (deficit) 1(c) 821,674 821,674 1,054,444 232,770 28.33% p

Revenue from operating activitiesRates 6 1,066,030 1,066,030 1,063,124 (2,906) (0.27%)

Operating grants, subsidies and contributions 11 1,204,333 396,406 241,003 (155,403) (39.20%) q

Fees and charges 470,794 249,205 259,794 10,589 4.25%

Service charges 3,450 3,450 3,450 0 0.00%

Interest earnings 148,500 35,398 30,503 (4,895) (13.83%)

Other revenue 35,870 6,870 72,082 65,212 949.23% p

Profit on disposal of assets 7 2,287 1,003 55,295 54,292 5412.96% p

2,931,264 1,758,362 1,725,251 (33,111)

Expenditure from operating activitiesEmployee costs (1,837,387) (448,016) (369,642) 78,374 17.49% p

Materials and contracts (320,190) (28,858) (230,403) (201,545) (698.40%) q

Utility charges (32,500) (9,252) (9,097) 155 1.68%

Depreciation on non-current assets (1,946,506) (486,624) (494,698) (8,074) (1.66%)

Insurance expenses (120,000) (69,500) (68,287) 1,213 1.75%

Other expenditure (132,250) (31,998) (12,560) 19,438 60.75% p

Loss on disposal of assets 7 (77,488) (62,917) 0 62,917 100.00% p

(4,466,321) (1,137,165) (1,184,687) (47,522)

Non-cash amounts excluded from operating activities 1(a) 2,021,707 548,538 520,355 (28,183) (5.14%)

Amount attributable to operating activities 486,650 1,169,735 1,060,919 (108,816)

Investing activitiesProceeds from non-operating grants, subsidies and contributions 12 694,971 273,305 272,921 (384) (0.14%)

Proceeds from disposal of assets 7 264,000 89,407 89,407 0 0.00%

Payments for property, plant and equipment 8 (2,725,000) (777,756) (184,957) 592,799 (76.22%) p

Amount attributable to investing activities (1,766,029) (415,044) 177,371 592,415

Financing ActivitiesTransfer from reserves 9 1,093,000 0 0 0 0.00%

Transfer to reserves 9 (635,295) (29,055) (29,055) 0 0.00%

Amount attributable to financing activities 457,705 (29,055) (29,055) 0

Closing funding surplus / (deficit) 1(c) 0 1,547,310 2,263,679

KEY INFORMATIONpq Indicates a variance between Year to Date (YTD) Actual and YTD Actual data as per the adopted materiality threshold.Refer to Note 14 for an explanation of the reasons for the variance.This statement is to be read in conjunction with the accompanying Financial Statements and Notes.

AdoptedBudget

YTD Budget

(a)

YTD Actual

(b)


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY NOTE 1FOR THE PERIOD ENDED 30 SEPTEMBER 2019 STATEMENT OF FINANCIAL ACTIVITY INFORMATION

(a) Non-cash items excluded from operating activities

The following non-cash revenue and expenditure has been excluded from operating activities

within the Statement of Financial Activity in accordance with Financial Management Regulation 32.

Notes AdoptedBudget

YTD Budget

(a)

YTD Actual

(b)Non-cash items excluded from operating activities

$ $ $

Adjustments to operating activitiesLess: Profit on asset disposals 7 (2,287) (1,003) (55,295)Contract liabilities not expected to be cleared at year end 0 0 80,952Add: Loss on asset disposals 7 77,488 62,917 0Add: Depreciation on assets 1,946,506 486,624 494,698

Total non-cash items excluded from operating activities 2,021,707 548,538 520,355

(b) Adjustments to net current assets in the Statement of Financial Activity

The following current assets and liabilities have been excluded Last This Time Yearfrom the net current assets used in the Statement of Financial Year Last toActivity in accordance with Financial Management Regulation Closing Year Date32 to agree to the surplus/(deficit) after imposition of general rates. 30 June 2019 30 September 2018 30 September 2019

Adjustments to net current assetsLess: Reserves - restricted cash 9 (5,623,122) (5,588,215) (5,652,177)Less: Non-current rates receivable 0 (19,996) 0Add: Borrowings 0 (5,000) 0Add: Provisions - employee 10 220,118 213,977 220,118Add: Change in accounting policy 1,196 0 49,225Total adjustments to net current assets (5,401,808) (5,399,234) (5,382,834)

(c) Net current assets used in the Statement of Financial Activity

Current assetsCash and cash equivalents 2 6,120,009 7,445,620 7,596,877Financial assets at amortised cost 894,984 0 0Rates receivables 3 102,623 322,747 313,963Receivables 3 85,380 190,346 101,991Other current assets 4 14,987 53,971 14,987

Less: Current liabilitiesPayables 5 (541,613) (146,792) (131,139)Contract liabilities 10 0 0 (30,048)Provisions 10 (220,118) (213,977) (220,118)

Less: Total adjustments to net current assets 1(b) (5,401,808) (5,399,234) (5,382,834)Closing funding surplus / (deficit) 1,054,444 2,252,681 2,263,679

CURRENT AND NON-CURRENT CLASSIFICATIONIn the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. Unless otherwise stated assets or liabilities are classified as current if expected to be settled within the next 12 months, being the Council's operational cycle.


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY OPERATING ACTIVITIESFOR THE PERIOD ENDED 30 SEPTEMBER 2019 NOTE 2

CASH AND FINANCIAL ASSETS

Total Interest MaturityDescription Classification Unrestricted Restricted Cash Trust Institution Rate Date

$ $ $ $

Cash on handMunicipal Account Cash and cash equivalents 858,654 0 858,654 0 Bendigo Bank Variable NilLicensing Account Cash and cash equivalents 10,693 0 10,693 0 Bendigo Bank Variable NilSavings Account Cash and cash equivalents 1,038,993 0 1,038,993 0 Bendigo Bank Variable NilATM Control Account Cash and cash equivalents 11,700 0 11,700 0 Bendigo Bank Nil NilATM Cash Account Cash and cash equivalents 23,300 0 23,300 0 Bendigo Bank Nil NilCash on Hand Cash and cash equivalents 1,360 0 1,360 0 On hand Nil NilTerm Deposit XXXXXX932 Cash and cash equivalents 0 4,752,568 4,752,568 0 Bendigo Bank 1.65% Dec 2019Term Deposit XXXXXX965 Cash and cash equivalents 0 899,609 899,609 0 Bendigo Bank 1.65% Dec 2019Trust Account Cash and cash equivalents 0 0 0 5,605 Bendigo Bank Variable Nil

Total 1,944,700 5,652,177 7,596,877 5,605

Comprising Cash and cash equivalents 1,944,700 5,652,177 7,596,877 5,605

1,944,700 5,652,177 7,596,877 5,605KEY INFORMATION Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highly liquid investments highly liquid investmentswith original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of net current assets.

The local government classifies financial assets at amortised cost if both of the following criteria are met:- the asset is held within a business model whose objective is to collect the contractual cashflows, and- the contractual terms give rise to cash flows that are solely payments of principal and interest.

Financial assets at amortised cost held with registered financial institutions are listed in this note other financial assets at amortised cost are provided in Note 4 - Other assets.

$1.94 MUnrestrictedTotal Cash

$7.6 MUnrestricted ,

1,944,700

Restricted , 5,652,177

Trust , 5,605



RECEIVABLES

Rates receivable 30 Jun 2019 30 Sep 19 Receivables - general Credit Current 30 Days 60 Days 90+ Days Total$ $ $ $ $ $ $ $

Opening arrears previous years 107,650 102,623 Receivables - general 0 89,898 984 100 8,685 99,667Levied this year 1,041,439 1,063,124 Percentage 0.0% 90.2% 1% 0.1% 8.7%Less - collections to date (1,046,466) (851,784) Balance per trial balanceEquals current outstanding 102,623 313,963 Sundry receivable 99,667

Allowance for impairment of receivables (2,676)Sport club loan 5,000

Net rates collectable 102,623 313,963 Total receivables general outstanding 101,991% Collected 91.1% 73.1% Amounts shown above include GST (where applicable)

KEY INFORMATION

Collected Rates Due

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of

73.1%

Debtors Due

$101,991

Over 30 Days

10%

Over 90 Days

8.7%

$313,963

business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.

0

200

400

600

800

1,000

1,200

1,400

1,600


Amou

nt $

('000

s)

Rates Receivable

2018-19

2019-20

Current90%

30 Days1%

60 Days0%

90+ Days9%

Accounts Receivable (non-rates)

Current

30 Days

60 Days

90+ Days



OTHER CURRENT ASSETS

Opening Asset Asset ClosingBalance Increase Reduction Balance

Other current assets 1 July 2019 30 September 2019$ $ $ $

InventoryStock on Hand 14,987 0 0 14,987

Total other current assets 14,987Amounts shown above include GST (where applicable)

InventoryInventories are measured at the lower of cost and net realisable value.Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

KEY INFORMATION



Payables

Payables - general Credit Current 30 Days 60 Days 90+ Days Total$ $ $ $ $ $

Payables - general 0 13,865 25,524 0 0 39,389Percentage 0% 35.2% 64.8% 0% 0%Balance per trial balanceSundry creditors 39,389ATO liabilities 27,793Credit card 2,660Housing Bonds 14,115Other payables 47,182Total payables general outstanding 131,139Amounts shown above include GST (where applicable)

Trade and other payables represent liabilities for goods and services provided to the Shire that are unpaid and arise when the Shire becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.

0%

KEY INFORMATION

Creditors Due

$131,139

Over 30 Days

65%

Over 90 Days

Current35%

30 Days65%

Aged PayablesCurrent

30 Days

60 Days

90+ Days

Sundry creditors

30%

ATO liabilities21%

Credit card2%

Housing Bonds11%

Other payables

36%

Payables

0 10,000 20,000 30,000 40,000 50,000

Sundry creditors

ATO liabilities

Credit card

Housing Bonds

Payables



RATE REVENUE

General rate revenue

Rate in Number of Rateable Rate Interim Back Total Rate Interim Back Total$ (cents) Properties Value Revenue Rate Rate Revenue Revenue Rates Rates Revenue

RATE TYPE $ $ $ $ $ $ $ $

Gross rental valueGRV 0.113500 135 959,752 108,932 0 0 108,932 108,850 0 0 108,850Unimproved valueUV 0.019330 218 52,870,500 1,022,198 0 0 1,022,198 1,022,198 (46) 0 1,022,152

Sub-Total 353 53,830,252 1,131,130 0 0 1,131,130 1,131,048 (46) 0 1,131,002

Minimum payment Minimum $Gross rental valueGRV 400 26 26,790 10,400 0 0 10,400 10,800 0 0 10,800Unimproved valueUV 400 25 231,348 10,000 0 0 10,000 10,400 0 0 10,400

Sub-total 51 258,138 20,400 0 0 20,400 21,200 0 0 21,200Discount (85,500) (89,078)

Amount from general rates 1,066,030 1,063,124

Total general rates 1,066,030 1,063,124

Budget YTD Actual



RATE REVENUEKEY INFORMATION

%

99.73%$1.07 M $1.06 M

General RatesBudget YTD Actual

Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions. Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

GRV UV

Budget YTD Actual

GRV10%

UV90%

GRV UV



DISPOSAL OF ASSETS

Asset Ref. Asset descriptionNet Book

Value Proceeds Profit (Loss)Net Book

Value Proceeds Profit (Loss)

$ $ $ $ $ $ $ $

Plant and equipmentTransportWS Ute 1 (KD000) 39,719 40,000 281 0 0 0 0 0Low Loader/Float (KD031) 22,019 10,000 0 (12,019) 0 16,364 16,364 0Volvo Grader (KD019) 132,917 70,000 0 (62,917) 0 37,727 37,727 0Ranger Gardener Ute (KD058) 13,776 12,000 0 (1,776) 0 0 0 0Other property and servicesCEO 1 (KD0) 33,997 35,000 1,003 0 34,112 35,316 1,204 0CEO 2 (KD0) 33,997 35,000 1,003 0 0 0 0 0DCEO 1 (0KD) 31,388 31,000 0 (388) 0 0 0 0DCEO 1 (0KD) 31,388 31,000 0 (388) 0 0 0 0

339,201 264,000 2,287 (77,488) 34,112 89,407 55,295 0

%34%$89,407

Budget YTD Actual

KEY INFORMATION

Proceeds on saleYTD Actual

$264,000Annual Budget

0

50,000

100,000

150,000

200,000

250,000

300,000

Proceeds on Sale

Budget Actual YTD


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY INVESTING ACTIVITIESFOR THE PERIOD ENDED 30 SEPTEMBER 2019 NOTE 8

CAPITAL ACQUISITIONS

Capital acquisitions Budget YTD Budget YTD ActualYTD Actual Variance

$ $ $ $Building and Improvements 520,000 0 0 0Plant and Equipment 637,000 425,000 89,852 (335,148)Furniture and Equipment 157,000 0 0 0Roads 1,326,000 331,506 95,105 (236,401)Other Infrastructure 85,000 21,250 0 (21,250)

Capital Expenditure Totals 2,725,000 777,756 184,957 (592,799)

Capital Acquisitions Funded By:

$ $ $ $Capital grants and contributions 694,971 273,305 272,921 (384)Other (disposals & C/Fwd) 264,000 89,407 89,407 0Cash backed reserves

Plant and equipment 353,000 0 0 0Building 520,000 0 0 0Recreation 70,000 0 0 0IT & Admin 150,000 0 0 0

Contribution - operations 673,029 415,044 (177,371) (592,415)

Capital funding total 2,725,000 777,756 184,957 (592,799)

SIGNIFICANT ACCOUNTING POLICIES KEY INFORMATIONAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the local government includes the cost of all materials used in the construction, direct labour on the project and an appropriate proportion of variable and fixed overhead. Certain asset classes may be revalued on a regular basis such that the carrying values are not materially different from fair value. Assets carried at fair value are to be revalued with sufficient regularity to ensure the carrying amount does not differ materially from that determined using fair value at reporting date.

Acquisitions % Spent

7%Capital Grant % Received

39%Annual Budget YTD Actual

$.69 M $.27 M

Adopted

Annual Budget YTD Actual

$2.73 M $.18 M

0

500

1,000

1,500

2,000

2,500

3,000

Thou

sand

s

YTD Budget YTD Actual


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY INVESTING ACTIVITIESFOR THE PERIOD ENDED 30 SEPTEMBER 2019 NOTE 8

CAPITAL ACQUISITIONS (CONTINUED)

Capital AcquisitionsAdopted Annual Budget YTD Budget YTD Actual Variance

(Under)/ Over

Building and Improvements $ $ $Lot 282 (Simmons) 20,000 0 0 0Lot 274 (Segond) 10,000 0 0 0Yalambee Units 25,000 0 0 0L550DEF Newcarlbeon UF 50,000 0 0 0Lot 204 (GROH) 40,000 0 0 0L164C (GROH) 350,000 0 0 0Caravan Park Chalets 25,000 0 0 0TOTAL - Building and Improvements 520,000 0 0 0

Plant & EquipmentWS Ute 1 (Mar) 55,000 0 0 0P31 L/Loader Float (Nov) 40,000 40,000 50,000 10,000P19 Volvo Grader 345,000 345,000 0 (345,000)P58 Garden Ford Ranger Tip Ute 30,000 0 0 0Misc Plant 15,000 0 0 0Exc. Vehicle 1 (Aug) 40,000 40,000 39,852 (148)Exc. Vehicle 2 (Jan) 40,000 0 0 0DCEO Vehicle 36,000 0 0 0DCEO Vehicle 36,000 0 0 0TOTAL - Plant & Equipment 637,000 425,000 89,852 (335,148)

Furniture & EquipmentDepot 7,000 0 0 0Servers/Computers 150,000 0 0TOTAL - Furniture & Equipment 157,000 0 0 0

RoadsKoorda Kulja W/Seal 150,000 37,500 0 (37,500)Koorda Kulja Reseal 9.00-12.50 90,000 22,500 413 (22,087)Koorda Kulja Reseal 29.00-31.00 60,000 15,000 1,579 (13,421)Burakin Wialki Reseal 150,000 37,500 69,020 31,520Koorda Dowerin W/Seal 150,000 37,500 0 (37,500)Koorda Dowerin Reseal 71,000 17,751 581 (17,170)Cadoux Koorda Recon 150,000 37,500 0 (37,500)Burakin Wialki W/Seal 150,000 37,500 6,761 (30,739)Commonwealth Ref/Sheet 70,000 17,502 0 (17,502)Kulja Central Ref/Sheet 56,000 14,001 0 (14,001)Mollerin Rock Sth Ref/Sheet 90,000 22,500 0 (22,500)Wilson Ref/Sheet 90,000 22,500 0 (22,500)Koorda Kulja Shoulders 49,000 12,252 16,751 4,499TOTAL - Roads 1,326,000 331,506 95,105 (236,401)

Other InfrastructureRec (Recycled Water System) 70,000 17,500 0 (17,500)Footpaths 15,000 3,750 0 (3,750)TOTAL - Other Infrastructure 85,000 21,250 0 (21,250)

2,725,000 777,756 184,957 (592,799)



CASH RESERVES

Cash backed reserve

Reserve nameOpening Balance

Budget Interest Earned

Actual Interest Earned

Budget Transfers In (+)

Actual Transfers In (+)

Budget Transfers Out (-)

Actual Transfers Out (-)

Budget Closing Balance

Actual YTD Closing Balance

$ $ $ $ $ $ $ $ $

Accrued Leave 195,766 0 1,012 4,546 0 0 0 200,312 196,778Road 590,547 0 3,050 111,391 0 0 0 701,938 593,597Plant and equipment 713,279 0 3,686 116,563 0 (353,000) 0 476,842 716,965Building 1,172,447 0 6,058 76,592 0 (520,000) 0 729,039 1,178,505TV Satellite 31,136 0 161 723 0 0 0 31,859 31,297Recreation 1,238,188 0 6,398 128,751 0 (70,000) 0 1,296,939 1,244,586Medical Practitioner 291,116 0 1,504 6,760 0 0 0 297,876 292,620IT & Admin 277,685 0 1,435 104,126 0 (150,000) 0 231,811 279,120Sewerage 880,064 0 4,547 80,435 0 0 0 960,499 884,611Community bus 61,261 0 317 1,423 0 0 0 62,684 61,578NRM 21,520 0 111 500 0 0 0 22,020 21,631Waste Management 150,113 0 776 3,485 0 0 0 153,598 150,889

5,623,122 0 29,055 635,295 0 (1,093,000) 0 5,165,417 5,652,177



CASH RESERVES

KEY INFORMATION

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

Accrued Leave

Road

Plant and equipment

Building

TV Satellite

Recreation

Medical Practitioner

IT & Admin

Sewerage

Community bus

NRM

Waste Management

Reserve balances

Opening Balance

Actual YTD Closing Balance



OTHER CURRENT LIABILITIES

Opening Liability Liability ClosingBalance Increase Reduction Balance

Other current liabilities Note 1 July 2019 30 September 2019$ $ $ $

Contract liabilitiesUnspent grants, contributions and reimbursements

0 30,048 0 30,048Total unspent grants, contributions and reimbursements 0 30,048 0 30,048

ProvisionsAnnual leave 119,823 0 0 119,823Long service leave 100,295 0 0 100,295Total Provisions 220,118 0 0 220,118

Total other current assets 250,166Amounts shown above include GST (where applicable)

A breakdown of contract liabilities and associated movements is provided on the following pages at Note 11 and 12

KEY INFORMATIONProvisionsProvisions are recognised when the Shire has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Employee benefitsShort-term employee benefits Provision is made for the Shire’s obligations for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Shire’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the calculation of net current assets.

Other long-term employee benefitsThe Shire’s obligations for employees’ annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.

Long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur. The Shire’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Shire does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current provisions.

Contract liabilitiesAn entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. Grants to acquire or construct recognisable non-financial assets to be controlled by the Shire are recognised as a liability until such time as the Shire satisfies its obligations under the agreement.

- operating


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY NOTE 11FOR THE PERIOD ENDED 30 SEPTEMBER 2019 OPERATING GRANTS AND CONTRIBUTIONS

Increase Liability CurrentProvider Liability in Reduction Liability Liability Adopted Budget YTD YTD Revenue

1-Jul Liability (As revenue) 30-Jun 30-Jun Revenue Budget Actual

$ $ $ $ $ $ $ $

Operating grants and subsidiesGovernance

Grant Wheatbelt Secondary Freight Network 0 100,000 0 100,000 19,048 84,952 14,158 0General purpose funding

Grants Commission 0 0 0 0 0 620,000 155,000 157,117Federal Road Grant 0 0 0 0 0 295,000 73,750 74,392

Law, order, public safetySubsidy - BFS 0 0 0 0 0 11,381 0 0

Recreation and cultureGrant - Aus Sport (Netball Resurface) 0 11,000 0 11,000 11,000 11,000 0 0

TransportGrant - MRD Direct 0 0 0 0 0 144,000 144,000 0

Other property and servicesGrant - Diesel Fuel Rebate 0 0 0 0 0 38,000 9,498 9,494

0 111,000 0 111,000 30,048 1,204,333 396,406 241,003

TOTALS 0 111,000 0 111,000 30,048 1,204,333 396,406 241,003

Unspent operating grant, subsidies and contributions liabilityOperating grants, subsidies and contributions

revenue


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY NOTE 12FOR THE PERIOD ENDED 30 SEPTEMBER 2019 NON-OPERATING GRANTS AND CONTRIBUTIONS

Increase Liability CurrentLiability in Reduction Liability Liability Adopted Budget YTD YTD Revenue

Provider 1-Jul Liability (As revenue) 30-Jun 30-Jun Revenue Budget Actual

$ $ $ $ $ $ $ $

Non-operating grants and subsidiesRecreation and culture

Grant - CSRFF Rec Ground 0 0 0 0 0 62,971 62,971 0Transport

Federal Roads to Recovery 0 0 0 0 0 322,000 107,334 0Grant - Regional Road Group 0 0 0 0 0 310,000 103,000 119,600Main roads 0 0 0 0 0 0 0 153,321

0 0 0 0 0 694,971 273,305 272,921

TOTALS 0 0 0 0 0 694,971 273,305 272,921

Unspent non operating grants, subsidies and contributions liability Non operating grants, subsidies and contributions revenue


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY NOTE 13FOR THE PERIOD ENDED 30 SEPTEMBER 2019 TRUST FUND

Opening Balance Amount Amount Closing Balance

Description 1 July 2019 Received Paid 30 Sep 2019$ $ $ $

Swimming Pool Committee 301 0 0 301RRG Chairman's Travel 910 0 0 910Koorda SES 4,394 0 0 4,394Nominations 0 320 0 320

5,605 320 0 5,925

Funds held at balance date over which the Shire has no control and which are not included in this statement are as follows:


NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY NOTE 14FOR THE PERIOD ENDED 30 SEPTEMBER 2019 EXPLANATION OF MATERIAL VARIANCES

The material variance thresholds are adopted annually by Council as an indicator of whether the actual expenditure or

The material variance adopted by Council for the 2019-20 year is $10,000 and 10.00%.

Reporting Program Var. $ Var. % Timing/

PermanentExplanation of Variance

$ %

Revenue from operating activities

Governance (14,158) (100.00%) q Timing

WSFR Contract Liability portion not

journaled for first milestone in project. To

send out invoices to participating Shires.

Recreation and culture 65,469 614.62% p TimingInsurance money for Drive In projector

claim came in this financial year.

Transport (89,909) (62.44%) q Timing

Roads to Recovery funding not claimed and

received until November. Invoices for sale

of grader and low loader received in

reporting month. Expenditure from operating activities

Community amenities 15,926 19.90% p Timing

Refuse Site, Sewerage Plant maintenance

lower than anticipated and Town Planning

Scheme Invoice not yet received.

Transport (72,308) (15.60%) q TimingRoad Preservation higher than monthly

budget split.

Investing activities

Capital acquisitions 592,799 76.22% p Timing

New grader acquisition not yet complete.

Staff anticipate by October month end the

transaction will be completed.

revenue varies from the year to date budget materially.


CASH FINANCIAL POSITION AS AT 09.10.2019

MUNICIPAL ACCOUNT

CASH AT BANK 09.10.2019

Bendigo Municipal 803,391.92

Bendigo Licencing 17,963.30

Bendigo Savings Account 1,038,993.22

Bendigo ATM Account 5,300.00

Bendigo ATM Cash Account 29,700.00

SUB TOTAL 1,895,348.44

LESS SUNDRY CREDITORS (53,077.35)

BALANCE 1,842,271.09

RESERVE FUNDS

ACCRUED LEAVE 196,777.62

ROAD 593,598.55

PLANT REPLACEMENT 716,964.06

BUILDING 1,073,377.57

COMMUNITY HOUSING 41,331.99

JOINT VENTURE 44,874.53

JOINT VENTURE (Johnson Place) 18,921.37

TV SATELITE 31,296.47

RECREATION 1,244,585.90

MEDICAL PRACTITIONER 292,620.61

INFORMATION TECHNOLOGY 279,119.77

SEWERAGE 884,610.97

COMMUNITY BUS 61,577.98

NRM 21,631.11

WASTE MANAGEMENT 150,888.52

BALANCE 5,652,177.02

TRUST FUNDS

Nominations -

RRG Chairman's Travel 910.45

Koorda SES 4,393.51

Councillor Donations 320.00

Swimming Pool Committee 300.50

BALANCE 5,924.46

SHIRE OF KOORDA | 26

INVESTMENT OF COUNCIL FUNDS

Period 1 July - 30 September 2019

Place of Investment Bendigo Term Deposit 633-000 153693965

Term of Investment 1 July - 30 September 2019

Interest Rate 2.60%

Opening Balance 1/07/2019 894,984.05

Interest Earned July - September 2019 4,624.49

Transfers Out

Transfers In

Actual Balance 30 September 2019 899,608.54

Reinvested 1 July - 30 September 2019

Interest Rate 1.65%

Place of Investment Bendigo Bank

Place of Investment Bendigo Term Deposit 633-000 153693932

Term of Investment 1 July - 27 September 2019

Interest Rate 2.00%

Opening Balance 1/07/2019 4,728,137.61

Interest Earned July - September 2019 24,430.87

Transfers Out

Transfers In

Actual Balance 30 September 2019 4,752,568.48

Reinvested 28 September - 27 December 2019

Interest Rate 1.65%


Names of Fund Invested Accrued Leave 196,777.62

Road 593,598.55

Plant 716,964.06

Building-Council 1,073,377.57

Community Housing 41,331.99

Joint Venture 44,874.53

Joint Venture (Johnson Place) 18,921.37

TV Satellite 31,296.47

Recreation 1,244,585.90

Medical Practitioner 292,620.61

IT & Administration 279,119.77

Sewerage 884,610.97

Community Bus 61,577.98

NRM 21,631.11

Waste Management 150,888.52

Balance 30 September 2019 5,652,177.02

Reserve Funds (153 693 965)

Reserve Funds (153 693 932)


INVESTMENT OF COUNCIL FUNDS

Place of Investment Bendigo Bank 633-000 158524405

Term of Investment Ongoing

Interest Rate Variable

Opening Balance 1/04/2019 188,137.05

Interest Earned April - June 2019 856.17

Transfers From Savings to Municpal

Transfers To Savings from Municipal 850,000.00

Accured Balance 30 September 2019 1,038,993.22

Reinvested Ongoing

Interest Rate Variable


Savings Account


PROPOSED DEBT RECOVERY POLICY

PURPOSE

To provide clear and appropriate debt recovery procedures which will be undertaken by the Shire of Koorda.

To ensure effective control over all invoiced debts owed to Council whilst being sympathetic to those ratepayers and debtors suffering genuine financial hardship.

POLICY

Outstanding Amounts

• All monies owed to Council are deemed to be overdue following a period of 50 days from the date of the original invoice (excluding instalments options and payment arrangements).

• At the expiration of the 50 day period Council shall issue a final notice giving the debtor a further 30 days to rectify the debt.

• At the expiration of the 30 day period, if payment has not been forthcoming, then Council will issue an overdue letter requesting payment within 14 days.

• At the expiration of the 14 day period, if payment has not been forthcoming, then council will issue a letter of intent to summons, advising of Councils ability to, in the case of rates, all legal costs will be incurred by the ratepayer and the ratepayers credit rating will be affected. Payment is requested in 7 days.

• The matter is then handed to a debt collection agency (or Fines Enforcement Registry), and all costs associated with debt collection action will be borne by the debtor.

• Prior to commencing any action to sell land under the provisions of the Local Government Act 1995, the matter is to be referred to Council for consideration.

• Interest on outstanding monies shall be calculated on a daily basis at a level set at Council’s annual budget for monies outstanding for a period greater than 35 days in accordance with Section 6.13(6) of the Local Government Act.

• In cases where the owner of a leased or renter property on which municipal rates are outstanding cannot be located or refuses to settle rates owed, notices may be served on the lessee or tenant to pay to the Council the rent due under the lease/tenancy agreement as it becomes due until the amount in arrear has been paid.

That any penalty interest accrued on an outstanding rates balance of less than ten dollars be written off by Council, in accordance with the provisions of Section 6.12 of the Local Government Act 1995.

That for a rates assessment with an outstanding balance $0 and $1,000 that no legal action be taken against the owner. Further that the owner be advised of the outstanding amount and that they can either choose to pay the debt, or the amount will show on the next rates notice received, accruing penalty interest at the appropriate rate.

That for a rates assessment with an outstanding balance of greater than $1,000, the matter be referred to Council’s debt collecting agency for recovery action to the extent permitted under the Local Government Act1995 (as amended).

Arrangements to Pay Off Debt: All requests for deferment and/or payment by instalments must be made in writing; and The ratepayer must when making application for deferment or payment by instalments provide writing:

• Details to support their payment;

• Advice as to the date payment will be finalised:

Ordinary Meeting of Council Attachments Wednesday 16 ......NEWROC Executive Meeting 24 September...

Documents

Transcript of Ordinary Meeting of Council Attachments Wednesday 16 ......NEWROC Executive Meeting 24 September...